Industry News

SEC mailing $356 million to Fannie Mae investors

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The checks are in the mail -- $356 million in checks to investors who were allegedly harmed by financial fraud at Fannie Mae between 1998 and 2004. The checks are being mailed to individual investors, pension plans and others by the Securities and Exchange Commission, which reached a settlement last year with the government-sponsored mortgage repurchaser. The Commission announced a toll-free number, 1-800-760-6903, and Web site,, have been created for investors who think they may be entitled to part of the settlement. The SEC charged Fannie Mae with issuing materially false and misleading financial statements in filings to the commission and in reports to investors. When the settlement was announced in May 2006, the Office of Federal Housing Enterprise Oversight estimated that improper accounting practices encouraged by senior managers led Fannie Mae to overstate earnings by an estimated $10.6 billion. The allegations led to the departure of top executives a...