On Tuesday, a NY federal judge, approved a settlement between the U.S. Securities and Exchange Commission (SEC) and three former Freddie Mac executives whom the regulator alleged made misleading statements regarding the government sponsored enterprise (GSE) exposure to subprime mortgages during the run-up to the eventual financial crisis.
Under the terms of the agreement, former executives Richard Syron, Patricia Cook and Donald Bisenius will not pay a fine or disgorgement, but agreed to donate the following amount of money: Syron, the former CEO $250,000; Cook, former chief businesses officer; and Bisenius, a former vice president $10,000. The donations are to be paid into a fair fund to compensate Freddie Mac investors. The donation amounts are based on the relative proportion of stock and option awards granted to the three defendants in 2006 and 2007.
This closes yet another ugly chapter that emerged from the financial market crisis of late 2008.
The experienced securities fraud attorneys at Colling Gilbert Wright & Carter have successfully represented investors who purchased Freddie Mac, Fannie Mae and other mortgage backed securities based on incomplete or misrepresented information. If you have suffered losses as a result of omissions or misrepresentations during the purchase of a security, please contact us for a free case evaluation