Former Fannie Mae executives face civil charges over alleged accounting fraud Jeannie Shawl at 5:54 PM ET
[JURIST] The Office of Federal Housing Enterprise Oversight (OFHEO) [official website] filed a notice of charges [PDF text; press release, PDF] Monday against three former Fannie Mae [official website] executives over their role in fraudulently reporting future earnings so that top executives would receive maximum performance bonuses. The action was taken against former Chairman and CEO Franklin D. Raines, former Vice Chairman and CFO J. Timothy Howard and former Senior VP and Controller Leanne G. Spencer based on allegations the three "improperly manipulated earnings to maximize their bonuses, while knowingly neglecting accounting systems and internal controls, misapplying over twenty accounting principles and misleading the regulator and the public." The OFHEO is seeking over $100 million in fines and disgorgement of bonuses in an amount over $115 million, among other penalties. Bloomberg has more.
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