Feds Snoop for Discrepancies and Possible Criminal Activity at Freddie Mac

MCLEAN, VA-The Securities and Exchange Commission has notified leading home and multifamily mortgage financier Freddie Mac that an official investigation has been launched to explore suspected accounting irregularities in company earnings over the last three-year period. The situation could lead to criminal charges. In addition to submitting to the roving eyes of the SEC, Freddie Mac will also get the once-over by the US Attorney’s office. Federal prosecutor for Virginia’s Eastern District Paul McNulty announced today the start of its investigation into possible illegal activity at Freddie Mac.

The news comes as no surprise to Freddie Mac; the company gave the SEC a heads-up on suspected wrongdoings last week after calling in president and COO David Glenn on purported document tampering. Freddie Mac publicly announced Glenn’s immediate dismissal Monday. Glenn had been with the company for 13 years. Two other top players–CEO Leland C. Brendsel and CFO Vaughn Clarke–have also vacated their posts in light of the recent revelations.