Federal prosecutors and the Securities and Exchange Commission are both conducting investigations into whether Freddie Mac properly disclosed risks associated with mortgage-related investments.

In its latest annual report to investors, Freddie Mac disclosed that it had received a federal grand jury subpoena from the U.S. Attorney’s Office for the Southern District of New York seeking documents related to accounting, disclosure and corporate governance matters dating back to Jan. 1, 2007. That investigation is now being conducted by the U.S. Attorney’s Office for the Eastern District of Virginia, Freddie Mac said.

On the same day Freddie Mac was subpoenaed by federal prosecutors — Sept. 26 — the company said it received notice from the SEC that the commission was conducting its own inquiry, and that Freddie Mac was not to destroy any documents that might shed light on the matter.

The SEC has also been conducting interviews with Freddie Mac employees, and the company is "fully cooperating in these matters," the company said.

David Kellermann — Freddie Mac’s former acting chief financial officer, found dead at his home in Virginia Wednesday (see story) — was among company employees investigators were hoping to question, but was not a target of the probe, the Washington Post reported today, citing unnamed sources.

A Freddie Mac spokesman told the Post there is no known connection between "this terrible personal tragedy and the ongoing inquiries that are discussed in our recent SEC filings."


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