Source Pravda.Ru

Fannie Mae former executives settle Ofheo's charges

The former chairman and chief executive officer of Fannie Mae decided to pay $24.7 million to settle the case of misstated earnings at the government sponsored enterprise and his role in it.

Former Chief Financial Officer Timothy Howard will pay $6.4 million in compensation and former Washington-based company's controller Leanne Spencer will be fined for $275,000.

Raines agreed to make a settlement but still denied the allegations made against him.

The Office of Federal Housing Enterprise Oversight started the fighting against the Fannie Mae‘s executives more than a year ago. The agency tried to find the responsible for $6.3 billion in misstatements from 2001 to mid-2004 at the Federal National Mortgage Association.

Ofheo filed suits against Raines, Howard and Spencer in December 2006 for more than $215 million on suspicion of accounting manipulation in order to meet profit and bonus targets.

Photo: www.lionseyemortgage.com