Former Freddie Mac CEO Settles for $16.4M
Posted Nov 7, 2007 8:33 PM CDT
By Martha Neil
A few weeks into what was expected to be a lengthy trial before an administrative law judge, a former chairman and chief executive of Freddie Mac has agreed to settle his case for $16.4 million, without admitting liability.
While a stunning sum, the $16.4 million is a fraction of the $1 billion in damages and penalties being sought by the Office of Federal Housing Enterprise Oversight from Leland Brendsel for alleged accounting manipulations, reports the Washington Post.
A similar case is also pending against former Fannie Mae chairman and chief executive Franklin Raines—who is represented by the same lawyer as Brendsel and is scheduled to go to trial next year before the same judge, the newspaper notes. Kevin M. Downey is Brendsel's lead attorney.
A New York Times article written when Raines was sued by the government last year details the claims against him.