Industry News

Freddie Mac to pay $4.8 million fine

Settles illegal campaign contribution allegations

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Freddie Mac has agreed to pay a record $3.8 million fine to settle allegations it made illegal campaign contributions, the Federal Election Commission said today.   The fine is by far the biggest levied in the Commission's history, the agency said.   Freddie Mac was accused of illegally using corporate resources between 2000 and 2003 for 85 fundraisers that collected about $1.7 million for federal candidates, the commission said.   The mortgage giant, whose formal name is the Federal Home Loan Mortgage Corporation, has agreed in a conciliation agreement to pay a $3.8 million civil penalty to settle allegations that it violated the Federal Election Campaign Act and FEC regulations, which prohibit corporations from making or facilitating contributions. "Freddie Mac takes these issues, which relate to prior management of both the company and its Government Relations operation, very seriously," said Freddie Mac spokesman David Palombi in a statement. "The settlement an...