[JURIST] Government-sponsored mortgage dealer Fannie Mae [Federal National Mortgage Association website] announced Thursday that the US Department of Justice (DOJ) has discontinued its two-year investigation [press release] into alleged accounting violations, though criminal prosecutions could still be brought against individual employees. Fannie Mae was notified by the US Attorney for the District of Columbia [official website] that "it does not plan to file charges against the company."

In May, regulators at the US Securities and Exchange Commission (SEC) and the Office of Federal Housing Enterprise Oversight (OFHEO) [official websites] announced a $400 million settlement [JURIST report] with Fannie Mae over alleged violations of the reporting and accounting provisions of the Securities Exchange Act of 1934 [text] and anti-fraud provisions of the Securities Act of 1933 [text]. Specifically, Fannie Mae was accused of fraudulently reporting future earnings so that top executives would receive maximum performance bonuses. MarketWatch has more.