Ex-Fannie Execs Hit With 101-Count Fraud Suit

Law360, New York (December 19, 2006, 12:00 AM EST) -- The government has filed a civil suit against three former top executives of mortgage lender Fannie Mae, including one-time CEO Franklin Raines, alleging they participated in an accounting fraud that resulted in a billion-dollar financial restatement.

The Office of Federal Housing Enterprise Oversight on Monday filed the 101-count suit against Raines, former chief financial officer Timothy Howard, and former controller Leanne Spencer.

The OFHEO alleges that “the individuals improperly manipulated earnings to maximize their bonuses, while knowingly neglecting accounting systems and internal controls, misapplying over 20...
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