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IT'S HUSH MONEY (Fannie Mae's "charitable foundations" covered-up $10.8B book-cooking)
NY POST ^ | March 2, 2006 | PAUL THARP with Bloomberg Wires

Posted on 03/02/2006 3:08:59 AM PST by Liz

Franklin Raines — the ousted cooked-books chief of mortgage giant Fannie Mae — is being accused of corrupting its directors by giving them $12M in charity checks to ignore his scandals.

A federal shareholder suit yesterday claims that Raines lavished directors with generous donations to their favorite charities, funneled through a Fannie Mae charitable foundation he controlled for serving the needy......to "dominate his fellow board members" and prevent them from challenging his activities in a mounting $10.8 billion accounting scandal at Fannie Mae.

Raines who was chairman of Fannie Mae's board and the its charitable foundation, directed the money to charities on which the directors served as trustees or supporters.....In exchange, the directors looked the other way and kept quiet about raising questions in at least 78 board meetings when the issues arose.

The money also influenced directors to let Raines and his financial chief Timothy Howard to simply walk away from the mess with $135 million in golden parachutes, the suit said.

Among pet groups Raines "directed" cash to were the Brookings Institution, which got $3.9M, and John F. Kennedy Center, which got $2.9M. Director Kenneth Duberstein served as a trustee at both organizations, the suit says. Two other charities where Duberstien served as a director were the National Alliance to End Homelessness Inc., which got $1M, and Johns Hopkins University, which got $240,000, the suit said.

The Fannie Mae Foundation, begun in 1979, characterizes itself "as the largest foundation in the country devoted to affordable housing and the revitalization of communities." It says it provided $47.4 million in 2004 to 600 non-profit groups nationwide.

The Senate Finance Committee said (is) investigating whether the charitable foundations of Fannie Mae and Freddie Mac violated lobbying and campaign finance laws.

(Excerpt) Read more at nypost.com ...


TOPICS: Crime/Corruption; Extended News; Government
KEYWORDS: charityfoundation; clintoncorruption; fannie; fanniemae; fnm; fob; jamiegorelick; torricelli
The (charity) money also influenced directors to let Raines and his financial chief Timothy Howard to simply walk away from the mess with $135 million in golden parachutes, the shareholder suit said.

A bona fide parasite---Fannie Mae's ex-CEO Franklin Raines (a Clinton appointee) was fired for bungling (cooking?) Fannie Mae's books after billion dollar accounting irregularities were uncovered. Raines was scheduled to get a $26 million tax paid parachute — not counting a monthly tax-paid pension of $116,300 for life. He owns options giving him $5.8 million in net profit plus another $8.7 million in deferred compensation and had already collected $4.87 million in special performance shares. He keeps $5 million paid-up life insurance paid for by taxpayers. Mr/Mrs Raines get free med/dental benefits for life, worth over $1 million.

Raines earned $20 million in salary, bonuses and stock awards the year before he was ousted......then sallied forth saying he was entitled to paychecks way after he was ousted thus adding another $600,000, which triggered a $2,000 monthly raise in his lifetime pension. Raines also laid claim to disputed options with a gross value of about $5.6 million, and....

.....get this..... Raines wanted F/M to match his charitable contributions by $10,000 a year. I guess that helped trigger the current lawsuit.

1 posted on 03/02/2006 3:09:01 AM PST by Liz
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To: Liz

Is there any single part of America that hasn't felt the corruption of the Clintonistas?


2 posted on 03/02/2006 3:15:44 AM PST by Old Sarge (Fobbit = REMF ... how do you like me now?)
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To: Liz

Franklin Raines - another x42i hack


3 posted on 03/02/2006 3:35:09 AM PST by stylin19a (Do you still have sex or are you already playing golf?)
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To: stylin19a

Wonder what x42's cut of the $10B scam was?


4 posted on 03/02/2006 3:38:58 AM PST by Liz (Liberty consists in having the power to do that which is permitted by the law. Cicero)
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To: Liz
Do not forget 9/11 cover-up artiste and inventor of that deady "Wall", Jamie Gorelick -- she was Vice Chairperson on the Fannie Board, see fer example:
The 1998 Wickersham Award for exceptional public service and dedication to the legal profession was recently presented to Jamie Gorelick . The award is given annually in connection with the main fund-raising event of LC's Friends of the Law Library, a dinner that traditionally takes place in the U.S. Supreme Court building.

"Jamie Gorelick has been a distinguished lawyer in private practice and government service. She combines outstanding professional accomplishments with a strong commitment to the public interest," said Abe Krash, president of the Friends, in his introduction. Ms. Gorelick served as general counsel of the Defense Department and subsequently as the deputy attorney general in the Justice Department in 1994-97 before assuming her present duties as vice chair of Fannie Mae, the congressionally chartered provider of home mortgages.

http://www.loc.gov/loc/lcib/9805/law.html


5 posted on 03/02/2006 3:48:45 AM PST by bvw
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To: Liz
I wonder if anyone has looked at Dilberstein's contracts with those charities to see if he got bonus money for brining in donations over a certain amount.

I have wondered if anyone was looking into Raines and his deals. Seems to me like he was way overpaid even if he hadn't been a crook.

6 posted on 03/02/2006 3:52:24 AM PST by Miss Marple (Lord, please look after Mozart Lover's and Jemian's sons and keep them strong.)
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To: Old Sarge
Is there any single part of America that hasn't felt the corruption of the Clintonistas?

No, and if you'll look a little farther you'll see that many of our politicians are corrupt too. I'm amazed to see just how bad it is in DC. I'm saddened to see how many Republicans are dirty too. Money and power corrupt.

7 posted on 03/02/2006 3:59:32 AM PST by NRA2BFree
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To: Miss Marple


The current suit over so-called "charity" contributions was surely launched based on the self-same suspicions you mention.......and as a result of investigations into Raines greed and corruption which got widespread coverage.


8 posted on 03/02/2006 4:01:07 AM PST by Liz (Liberty consists in having the power to do that which is permitted by the law. Cicero)
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To: bvw

"Public service" award, my Aunt Tilly.

Why Gorelick has not been nailed for malfeasance is an outrage.


9 posted on 03/02/2006 4:03:11 AM PST by Liz (Liberty consists in having the power to do that which is permitted by the law. Cicero)
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To: Liz

RAINES, FRANKLIN
WASH, DC 20008
FANNIE MAE

BONIOR, DAVID E
VIA BONIOR FOR CONGRESS
12/29/1999 500.00 20035261564

RAINES, FRANKLIN
WASHINGTON, DC 20008

TORRICELLI, ROBERT G
VIA TORRICELLI FOR U S SENATE INC
06/30/1999 500.00 99020070445

RAINES, FRANKLIN
WASHINGTON, DC 20008
FANNIE MAE

BENTSEN, KENNETH EDWARD JR
VIA KEN BENTSEN FOR CONGRESS COMMITTEE
10/21/2000 1000.00 20036670553

BOND, CHRISTOPHER S
VIA MISSOURIANS FOR KIT BOND
11/18/2003 1000.00 24020070966

CARPER, THOMAS R
VIA CARPER FOR SENATE
04/11/2003 1000.00 23020293534

CLINTON, HILLARY RODHAM
VIA HILLARY RODHAM CLINTON FOR US SENATE COMMITTEE INC
04/27/2000 1000.00 20020222609

DODD, CHRISTOPHER J
VIA FRIENDS OF CHRIS DODD
06/27/2000 500.00 20020241084
09/29/2003 1000.00 23020382250

JOHNSON, TIM
VIA TIM JOHNSON FOR SOUTH DAKOTA INC
12/29/1999 500.00 20020032071
10/26/2002 1000.00 22020940618

LAUTENBERG, FRANK R
VIA LAUTENBERG FOR SENATE
10/26/2002 1000.00 22020941978

RAINES, FRANKLIN
WASHINGTON, DC 20008
FANNIE MAE/CEO

WALL JR, JAMES RICHARD
VIA WALL FOR CONGRESS
12/04/2005 250.00 26970051311

RAINES, FRANKLIN
WASHINGTON, DC 20008
FANNIEMAE

SARBANES, PAUL S
VIA CITIZENS FOR SARBANES
04/26/1999 1000.00 99020064424

RAINES, FRANKLIN
WASHINGTON, DC 20016
FANNIE MAE

DEMOCRATIC SENATORIAL CAMPAIGN COMMITTEE
09/30/2004 5000.00 24020891795

RAINES, FRANKLIN
WASHINGTON, DC 20016
FANNIE MAE/CHAIRMAN & CEO

KANJORSKI, PAUL E
VIA PENNSYLVANIANS FOR KANJORSKI
10/16/2002 1000.00 22992393091

RAINES, FRANKLIN D
WASHINGTON, DC 20008
FANNIE MAE

BAYH, EVAN
VIA EVAN BAYH COMMITTEE
03/28/2003 1000.00 23020171297

BENTSEN, KENNETH EDWARD JR
VIA KEN BENTSEN FOR US SENATE COMMITTEE
01/16/2002 1000.00 22020150565

BOND, CHRISTOPHER S
VIA MISSOURIANS FOR KIT BOND
08/04/1998 1000.00 98020212373

BYRD, ROBERT CARLYLE
VIA FRIENDS OF ROBERT C BYRD COMMITTEE
12/31/1999 500.00 20020021057

DASCHLE, THOMAS ANDREW
VIA A LOT OF PEOPLE SUPPORTING TOM DASCHLE INC
07/15/2004 2000.00 24020881574

DEDICATED AMERICANS FOR THE SENATE AND HOUSE PAC
09/17/1999 1000.00 99034980232

FRIENDS OF PHIL GRAMM PAC
05/08/2000 1000.00 20020242321

FUTURE PAC - FEDERAL
10/18/2000 1000.00 20036403515

HARMAN, JANE
VIA FRIENDS OF JANE HARMAN
12/30/1999 250.00 20035233283

KANJORSKI, PAUL E
VIA PENNSYLVANIANS FOR KANJORSKI
12/31/1999 500.00 20035170309

KIRK, RONALD
VIA RON KIRK FOR U S SENATE
10/10/2002 1000.00 22020800366

LAFALCE, JOHN J
VIA FRIENDS OF JOHN LAFALCE
10/23/1998 500.00 98034091646

NATIONAL LEADERSHIP PAC
09/28/1998 1000.00 98033602331

REID, HARRY
VIA FRIENDS FOR HARRY REID
10/24/2002 1000.00 23020052067
03/31/2003 1000.00 23020170127
07/22/2004 1000.00 24020672028

ROBB, CHARLES S
VIA ROBB FOR THE SENATE
10/13/2000 500.00 20020360336

SCHUMER, CHARLES E
VIA FRIENDS OF SCHUMER
07/18/2003 1000.00 23020451120

RAINES, FRANKLIN D
WASHINGTON, DC 20008
FANNIE MAE/CEO

FORD, HAROLD E JR
VIA HAROLD FORD JR FOR TENNESSEE
05/27/2003 1000.00 23991357621

LEADERSHIP PAC 2006
04/11/2003 1000.00 23990963702

RAINES, FRANKLIN D
WASHINGTON, DC 20008
FANNIE MAE/CHAIRMAN

NATIONAL LEADERSHIP PAC
12/17/2003 1000.00 24990316133

RAINES, FRANKLIN D
WASHINGTON, DC 20008
FANNIE MAE/CHAIRMAN & CEO

FEDERAL NATIONAL MORTGAGE ASSOCIATION POLTICAL ACTION COMMITTEE AKA FANNIE MAE PAC
12/12/2003 5000.00 24990251530

RAINES, FRANKLIN D
WASHINGTON, DC 20008
FANNIE MAE/CHAIRMAN OF THE BOARD

FEDERAL NATIONAL MORTGAGE ASSOCIATION POLTICAL ACTION COMMITTEE AKA FANNIE MAE PAC
03/15/2004 5000.00 24991134828

RAINES, FRANKLIN D
WASHINGTON, DC 20008
FANNIEMAE

CONRAD, KENT
VIA FRIENDS OF KENT CONRAD
06/16/1999 1000.00 99020090288

FEINSTEIN, DIANNE
VIA FEINSTEIN FOR SENATE
05/20/1999 1000.00 99020073189

OBAMA, BARACK
VIA OBAMA FOR ILLINOIS INC
06/14/2004 1000.00 24020461972

SHELBY, RICHARD C
VIA SHELBY FOR U S SENATE
12/12/2001 1000.00 22020043062
06/13/2003 1000.00 23020270751

RAINES, FRANKLIN D
WASHINGTON, DC 20008
FEDERAL NAT'L MORTGAGE ASSO

SPRATT, JOHN M JR
VIA SPRATT FOR CONGRESS COMMITTEE
10/20/1998 1000.00 98033961515

RAINES, FRANKLIN D
WASHINGTON, DC 20016
FANNIE MAE

BOWLES, ERSKINE B
VIA ERSKINE BOWLES FOR US SENATE
08/08/2002 1000.00 22020622716
08/08/2002 1000.00 22020622716
02/10/2004 2000.00 24020280596
07/20/2004 2000.00 24020853430

RAINES, FRANKLIN D.
WASHINGTON, DC 20008
FANNIE MAE/CEO

AMERICAN LIBERTY POLITICAL ACTION COMMITTEE
07/16/2003 1000.00 23991797969

MATSUI, DORIS
VIA MATSUI FOR CONGRESS
01/27/2005 1000.00 25990101262

RAINES, FRANKLIN D.
WASHINGTON, DC 20008
FANNIE MAE/CHAIRMAN/CEO

EMANUEL, RAHM
VIA FRIENDS OF RAHM EMANUEL
11/20/2001 1000.00 22990368294

RAINES, FRANKLIN D.
WASHINGTON, DC 20008
FANNIE MAE/EXECUTIVE

PAC TO THE FUTURE
03/20/2003 1000.00 23990755315

RAINES, FRANKLIN D. MR.
WASHINGTON, DC 20008
FANNIE MAE/CHAIRMAN

GORE, AL
VIA GORE 2000 INC
04/04/2000 1000.00 20990123718


10 posted on 03/02/2006 4:06:52 AM PST by mewzilla (Property must be secured or liberty cannot exist. John Adams)
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To: Liz
For two years he was the President's (William Jefferson Clinton) key negotiator in the talks that led to passage of the bipartisan Balanced Budget Act of 1997. Raines was the first OMB director in a generation to balance the federal budget. Raines also helped the President manage the federal government by coordinating procurement, financial management, information technology, and regulatory policies for all federal agencies.

Maybe he can run for mayor of New Orleans................

11 posted on 03/02/2006 4:13:27 AM PST by yoe
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To: Liz

Liz, when was Raines ousted from FANNIE MAE, do you recall?


12 posted on 03/02/2006 4:16:45 AM PST by mewzilla (Property must be secured or liberty cannot exist. John Adams)
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To: Liz
BTTT!!!

The terrible thing here ... this is ALL taxpayer money!

13 posted on 03/02/2006 5:01:18 AM PST by jamaksin
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To: Liz
I had a golfing buddy back in 99 and 2000 that worked for this organization. I can't recall the details but he would tell me stories that always started with "You're not going to believe this s#it..." and end with "...in-freaking-credible".
He would pass on mostly watercooler talk and what he thought was questionable behavior by his superiors. What got me was that it always involved funds in the tens of millions. I suggested that he report it to the SEC, DOJ or whatever governing body that regulated the transactions.
He has since left Fannie Mae.
14 posted on 03/02/2006 5:14:07 AM PST by newnhdad (All your government branches are belong to us!! not for long if this cr@p keeps up.)
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To: Liz
For those wishing to read the complete article would you post a correct link. The one you have takes me right to the NY Post's Letters to the Editor nor can I find the article anywhere on the NY Post web site.
15 posted on 03/02/2006 6:01:46 AM PST by Lecie
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To: Lecie
Answering myself..I found the article and here's the correct URL http://www.nypost.com/business/62602.htm
16 posted on 03/02/2006 6:12:22 AM PST by Lecie
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To: Liz
Affirmative action in Action.

You wint see this in the MSM.

17 posted on 03/02/2006 6:56:16 AM PST by BIGZ
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To: mewzilla


Fannie Mae's directors on Dec. 21, 2004 removed Raines and CFO Timothy Howard after after the Securities and Exchange Commission ruled that from 2001 until mid-2004 the company made accounting "mistakes."


18 posted on 03/02/2006 8:08:59 AM PST by Liz (Liberty consists in having the power to do that which is permitted by the law. Cicero)
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To: Liz
Thanks! Wonder why then in 2005, as seen here, Raines is still referring to himself as CEO?
19 posted on 03/02/2006 8:13:00 AM PST by mewzilla (Property must be secured or liberty cannot exist. John Adams)
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To: yoe; mewzilla; jamaksin; bvw

OFHEO | September 22, 2004 | Office of Federal Housing Enterprise Oversight

Federal regulator OFHEO released a damning report on accounting irregularities at mortgage finance giant Fannie Mae. One critical finding was that in 1998, Fannie misstated expenses in order to meet earnings targets that triggered huge executive bonuses. The report states:

1998 Salary and Bonus of Senior Fannie Mae Executives

Officer Title Salary AIP Award/Bonus

James A. Johnson Chairman and CEO $966,000 $1,932,000

Franklin D. Raines Chairman and CEO Designate $526,154 $1,109,589

Lawrence M. Small President and COO $783,839 $1,108,259

Jamie Gorelick Vice-Chairman $567,000 $779,625

J. Timothy Howard EVP and CFO $395,000 $493,750

Robert J. Levin EVP, Housing and Comm. Develop. $395,000 $493,750


20 posted on 03/02/2006 8:16:59 AM PST by Liz (Liberty consists in having the power to do that which is permitted by the law. Cicero)
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To: Old Sarge

no


21 posted on 03/02/2006 8:18:11 AM PST by Calpernia (Breederville.com)
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To: mewzilla
Wonder why then in 2005, as seen here, Raines is still referring to himself as CEO?

Here's a few possibilities:

Raines filed false documents (a crime).

Claimed he was still owed salary to June 2005---in his diseased mind he was still CEO.

Withdrawal symptoms?

Who knows what goes on in the mind of greedy corrupt Clintonistas like Raines.

22 posted on 03/02/2006 8:23:40 AM PST by Liz (Liberty consists in having the power to do that which is permitted by the law. Cicero)
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To: Liz

Well, if what he did was illegal, someone really should look into it....


23 posted on 03/02/2006 8:25:11 AM PST by mewzilla (Property must be secured or liberty cannot exist. John Adams)
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To: mewzilla; BIGZ; newnhdad

The number of crimes committed here are extensive:

The extent of Raines’ subsidiary interests in financial structuring of federal tax grants and whether Raines conspired to allocate tax assets to friends, family and insiders (that's an easy one to find).

As far as the "charitable foundation," the IRS is investigating foundations as major money-laundering machines. There are numerous ways they can steal, illegally convert, then launder money in these foundations.


Raines, and other federal employees who are bonded should incur imprisonment, fines, or other criminal penalties for lying on bonding applications.


24 posted on 03/02/2006 8:41:04 AM PST by Liz (Liberty consists in having the power to do that which is permitted by the law. Cicero)
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To: mewzilla

Justice Dept. Opens Fannie Criminal Probe

Thursday September 30, 2004

NEW YORK (Reuters) - The Justice Department has opened an investigation of possible accounting fraud at Fannie Mae, the Wall Street Journal reported on Thursday, after a federal regulator said the mortgage giant may have manipulated its earnings targets.


The Journal reported that the investigation is still in the preliminary stages. Fannie has been under fire since the Office of Federal Housing Enterprise Oversight, or Ofheo, accused the company of improper accounting that allowed senior executives to pocket multimillion-dollar bonuses.


According to the newspaper, officials have said that some Fannie Mae executives may have misled regulators, which in some cases would be an added criminal offense. Because of the nature of Ofheo's disclosures, the Justice Department concluded that it demanded an investigation, the Journal added.


Ofheo referred its report to prosecutors last week, lawyers close to the case told the Journal. The regulator's report raised questions of possible accounting manipulations involving financial instruments used to hedge risk, and expensing of costs associated with the company's core business of buying home mortgages from lenders around the country.

No one was immediately available at Fannie Mae or the Justice Department to comment on Thursday.


25 posted on 03/02/2006 8:50:50 AM PST by Liz (Liberty consists in having the power to do that which is permitted by the law. Cicero)
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To: Liz; holdonnow
Jamie S. Gorelick is a current Director of United Technologies. See http://investors.utc.com/bios.cfm

United Technologies is co-sponsoring Hannity on Broadway, is that true?

26 posted on 03/02/2006 6:23:52 PM PST by bvw
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To: bvw
Will check it out.

EXCERPT: 14 give $250,000 each to Bush fete Inauguration likely among costliest. Manny Fernandez Washington Post Dec. 19, 2004----More than a dozen wealthy Bush supporters have donated $250,000 each to help pay for the president's second inauguration, which is shaping up as one of the most expensive. According to a major donor list on the Presidential Inaugural Committee's Web site, 14 companies and individuals each have given $250,000, and 10 have contributed $100,000. The list, which includes all donations made as of Thursday, also shows a contribution of $25,000 and another of $50,000. The $250,000 donors include former Enron President Richard Kinder, Dell Computer founder Michael Dell and Texas oilman and corporate takeover specialist T. Boone Pickens. Also on the $250,000 list are ExxonMobil Corp.; Sallie Mae Inc., a Reston, Va.-based company that annually provides billions of dollars in student loans; United Technologies Corp., a unit of which manufactures Army Black Hawk helicopters; the utility Southern Co.; and Stephens Group Inc., an Arkansas venture capital company.

27 posted on 03/03/2006 4:45:55 AM PST by Liz (Liberty consists in having the power to do that which is permitted by the law. Cicero)
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