Federal prosecutors in Alexandria are leading a criminal investigation into Freddie Mac, in part focusing on whether the company properly disclosed the risks associated with mortgage-related investments, law enforcement sources familiar with the investigation said yesterday.No word yet from Rahm Emanuel(Democrat-Freddie Mac) or Jesse Jackson.
A parallel civil investigation into disclosure, accounting and corporate governance issues at Freddie Mac is also underway at the Securities and Exchange Commission, the company said in a March regulatory filing, which also disclosed the U.S. attorney's investigation. The SEC has subpoenaed documents and deposed employees at the mortgage finance giant, but the investigation is still in an early stage, according to a source familiar with the matter.
Investigators had hoped to question David B. Kellermann, the Freddie Mac acting chief financial officer who police said was found dead yesterday in an apparent suicide, but he was not a target of the probe, sources said.
It could not be determined if Kellermann had been questioned before his death. His death is not expected to affect the probe, sources said, because other Freddie Mac executives could provide similiar information.
Wednesday, April 22, 2009
Freddie Mac Disclosures To Investors Examined
The Washington Post reports: