Industry News

Former Freddie CEO ordered to testify

Judge gives Brendsel 14 days to appear before federal regulators
Published on Feb 4, 2004

Former Freddie Mac CEO Leland Brendsel has been ordered to testify in a federal regulator's investigation of the mortgage finance corporation's accounting problems. Judge Leonie Brinkema of the U.S. District Court for the Eastern District of Virginia in an order issued Monday upheld a subpoena by the Office of Federal Housing Enterprise Oversight that requires Brendsel to appear and testify in OFHEO's examination of Freddie Mac. OFHEO issued the subpoena Oct. 10, 2003. The judge's order directs Brendsel to comply within 14 days. Brendsel was among the Freddie Mac executives who resigned in June after the company disclosed massive accounting errors that later resulted in an earnings restatement of $5 billion. OFHEO levied a $125 million fine against Freddie Mac, and ordered the corporation to increase its capital reserves until its produces current financial statements. OFHEO Director Armando Falcon applauded the judge's decision. "I am pleased that the court has enforced our atte...

Comments