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Charges Filed Against Former Fannie Mae Execs
AP ^ | Monday December 18, 4:58 pm ET | Marcy Gordon, AP Business Writer

Posted on 12/18/2006 12:01:17 PM PST by Lunatic Fringe

Edited on 12/18/2006 2:45:32 PM PST by Admin Moderator. [history]

U.S. Files Civil Charges Against Former Fannie Mae Chief Raines, Other Top Executives

WASHINGTON (AP) -- The government on Monday filed civil charges against former Fannie Mae chief Franklin Raines and the mortgage giant's former finance chief and controller, seeking fines and the return of millions in bonus money said to be tied to an improper accounting scheme.

The Office of Federal Housing Enterprise Oversight announced that it filed 101 charges against Raines, former chief financial officer Timothy Howard and former controller Leanne Spencer.

Raines and Howard were swept out of office two years ago in the multibilllion-dollar accounting scandal at the government-sponsored company, which finances one of every five home loans in the United States.

The charges "reveal how the individuals improperly manipulated earnings to maximize their bonuses, while knowingly neglecting accounting systems and internal controls, misapplying over 20 accounting principles, and misleading the regulator and the public," OFHEO Director James B. Lockhart said in a statement.

OFHEO, the regulator for Fannie Mae and Freddie Mac, its smaller sibling in the $8 trillion home-mortgage market, last May issued a blistering report alleging a six-year accounting fraud at Washington-based Fannie Mae, the second-largest U.S. financial institution after Citigroup Inc.

The regulators said the scheme included manipulations to reach quarterly earnings targets so that company executives could pocket hundreds of millions in bonuses from 1998 to 2004.


TOPICS: Breaking News
KEYWORDS: clintonappointees; clintonlegacy; clintonscandals; corruption; fanniemae; franklinraines; fraud; gorelick; housing; leannespencer; timothyhoward

1 posted on 12/18/2006 12:01:19 PM PST by Lunatic Fringe
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To: Lunatic Fringe

All Clintonites IIRC.


2 posted on 12/18/2006 12:01:47 PM PST by RockinRight (Barack Hussein Obama, Jr. He's a Socialist. And unqualified.)
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To: Lunatic Fringe

I won't be happy until "Stone Wall" Gorelick is in that list...


3 posted on 12/18/2006 12:02:58 PM PST by Virginia Ridgerunner ("Si vis pacem para bellum")
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To: Lunatic Fringe

Schadenfreude - and loving it.


4 posted on 12/18/2006 12:06:18 PM PST by SargeK
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To: Lunatic Fringe

The Clinton appointees are still being indicted, almost 6 years after he left office.



Don't worry, though... Hillary will pardon him.


5 posted on 12/18/2006 12:06:56 PM PST by Brilliant
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To: Brilliant

He really knew how to pick them.


6 posted on 12/18/2006 12:07:34 PM PST by golfisnr1 (Democrats are like roaches - hard to get rid of.)
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To: Lunatic Fringe

link?


7 posted on 12/18/2006 12:07:52 PM PST by Eagle of Liberty ("I do a lot of things to irritate the libs. And it works!" - Rush Limbaugh)
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To: Virginia Ridgerunner

Gorelick was at Freddie, wasn't she? Of course, Freddie's got big problems, too.


8 posted on 12/18/2006 12:07:54 PM PST by Brilliant
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To: Kerretarded; Admin Moderator

Link:

http://biz.yahoo.com/ap/061218/fannie_mae_executives_sued.html?.v=2


9 posted on 12/18/2006 12:09:55 PM PST by Lunatic Fringe (Say "NO" to the Trans-Texas Corridor)
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To: Lunatic Fringe

How about Gorelick?


10 posted on 12/18/2006 12:10:56 PM PST by Doctor Raoul (Pinch and Keller need to check in at the Ken Lay Suite at a Federal SuperMax...)
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To: Virginia Ridgerunner

You beat me to it. Gorlick was in that bunch at Fannie Fraud too.


11 posted on 12/18/2006 12:17:25 PM PST by Wuli
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To: Brilliant

http://www.fanniemae.com/newsreleases/2003/2340.jhtml?p=Media
(SNIP)
January 10, 2003

Fannie Mae's Vice Chair Jamie Gorelick to Step Down in July; CFO Timothy Howard to Become Vice Chairman
WASHINGTON, DC -- Fannie Mae (FNM/NYSE), the nation's largest source of financing for home mortgages, today announced that Vice Chair Jamie Gorelick has advised the company she will step down on July 1, 2003, to devote substantial time to the bipartisan national commission investigating the attacks of September 11, 2001 and to pursue other interests. The company also announced that its Executive Vice President and Chief Financial Officer, Timothy Howard, will succeed Gorelick as Vice Chair, and will be nominated to be elected to the Board of Directors at the annual meeting in May.


"Jamie Gorelick's leadership is a big reason why Fannie Mae is a great company that achieves its mission of bringing the American Dream to all Americans," said Fannie Mae's Chairman and CEO Franklin D. Raines. "Jamie's unwavering focus on our corporate responsibility has made Fannie Mae the market leader in serving minority and lower-income families, a model corporate citizen, and one of America's best places to work."
"All of us at Fannie Mae are extremely proud of Jamie's commitment and service to the company and her devotion to the American Dream business," Raines said. "But we are also proud of her lifelong devotion to public service and her commitment -- and the unique contributions she will make -- to helping our nation understand and learn from the events that led to the searing tragedy of September 11th. We appreciate her dedication to the company and to our nation, and we will deeply miss her presence at Fannie Mae."


Gorelick joined the company in May 1997 as Vice Chair. As a member of the Office of the Chairman, she has shared responsibility for the overall management of the company, directed its efforts to reach underserved markets and has overseen Fannie Mae's external relationships, legal and regulatory affairs.


12 posted on 12/18/2006 12:35:29 PM PST by Mo1 (Thank You Mr & Mrs "I'm gonna teach you a lesson" Voter ... you just screwed us on so many levels)
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To: Lunatic Fringe

I clicked on it, hoping to see Gorelick indicted.

All I want for Christmas is to see Jamie Gorelick frog marched to jail.


13 posted on 12/18/2006 12:36:51 PM PST by NeoCaveman (Conservativism was not tried and found wanting, instead it was found wanting to be tried.)
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To: Mo1

http://www.washingtonpost.com/wp-dyn/articles/A32845-2005Apr6.html
(SNIP)
False Signatures Aided Fannie Mae Bonuses, Falcon Says

By Kathleen Day and Terence O'Hara
Washington Post Staff Writers
Thursday, April 7, 2005; Page E01

Fannie Mae employees falsified signatures on accounting transactions that helped the company meet earnings targets for 1998, a "manipulation" that triggered multimillion-dollar bonuses for top executives, a federal regulator said yesterday


14 posted on 12/18/2006 12:39:20 PM PST by Mo1 (Thank You Mr & Mrs "I'm gonna teach you a lesson" Voter ... you just screwed us on so many levels)
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To: Lunatic Fringe

Civil charges?? If they were Pubbies there would be criminal charges. This case will go nowhere as it will be largely ignored by MSM.


15 posted on 12/18/2006 12:39:25 PM PST by KenmcG414
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To: Lunatic Fringe

Enron was the center of all evil because Dick Cheney had a nodding acquaintance with them. Since Fannie Mae is run by DemonRats, they'll get 5 minutes in jail and have to pay back 3% of the proceeds that they got through fraud. All things considered, paying back a couple of hundred mil for an $8 billion dollar scam shows a great return on investment, but you have to know a Kennedy or Klinton to get in!


16 posted on 12/18/2006 12:45:29 PM PST by Excuse_My_Bellicosity ("A litany of complaints is not a plan." - GW Bush, referring to DNC's lack of a platform on ANYTHING)
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To: Mo1
Fannie Mae (FNM/NYSE), the nation's largest source of financing for home mortgages, today announced that Vice Chair Jamie Gorelick has advised the company she will step down on July 1, 2003, to devote substantial time to the bipartisan national commission rape of justice in "investigating" the attacks of September 11, 2001 and to pursue other interests high-dollar scams because a billion dollars doesn't go as far as it used to when you're a hedonistic pig.
17 posted on 12/18/2006 12:51:26 PM PST by Excuse_My_Bellicosity ("A litany of complaints is not a plan." - GW Bush, referring to DNC's lack of a platform on ANYTHING)
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To: Lunatic Fringe

In the grand scheme of things, Fannie Mae is MUCH more important than Enron. Fraud at such a large financial institution should be treated more seriously than Enron was (which was overzealously).


18 posted on 12/18/2006 1:05:01 PM PST by PghBaldy (Reporter: Are you surprised? Nancy Pelosi: No. My eyes always look like this.)
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To: Mo1

Excellent!

http://www.fanniemae.com/newsreleases/2003/2340.jhtml?p=Media

Excerpt:

""Jamie Gorelick's leadership is a big reason why Fannie Mae is a great company that achieves its mission of bringing the American Dream to all Americans," said Fannie Mae's Chairman and CEO Franklin D. Raines. "Jamie's unwavering focus on our corporate responsibility has made Fannie Mae the market leader in serving minority and lower-income families, a model corporate citizen, and one of America's best places to work."

"All of us at Fannie Mae are extremely proud of Jamie's commitment and service to the company and her devotion to the American Dream business," Raines said. "But we are also proud of her lifelong devotion to public service and her commitment -- and the unique contributions she will make -- to helping our nation understand and learn from the events that led to the searing tragedy of September 11th. We appreciate her dedication to the company and to our nation, and we will deeply miss her presence at Fannie Mae."


Gorelick joined the company in May 1997 as Vice Chair. As a member of the Office of the Chairman, she has shared responsibility for the overall management of the company, directed its efforts to reach underserved markets and has overseen Fannie Mae's external relationships, legal and regulatory affairs.

"This has been an extremely hard decision for me because I am so proud of the role that our company plays in the housing finance system," Gorelick said."


19 posted on 12/18/2006 1:48:29 PM PST by Grampa Dave (The Bush haters on both sides have elected the government they have dreamed of!)
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To: Lunatic Fringe

Good, these crooks should be punished severely.


20 posted on 12/18/2006 2:04:56 PM PST by expatpat
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To: Lunatic Fringe

GRRRRRREAT NEWS!


21 posted on 12/18/2006 2:34:47 PM PST by PGalt
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To: Lunatic Fringe
Franklin Raines was Clinton's Budget Director.

Res Ipsa Loquitur.

22 posted on 12/18/2006 2:40:39 PM PST by Bubba_Leroy (What did Rather know and when did he know it?)
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To: Brilliant

was there anybody who was clean who was connected with the Clintons? My gosh- you'd think with the proliferation of dirty connections- they'd be able to get something on BOTH the Clintons.http://sacredscoop.com


23 posted on 12/18/2006 3:22:23 PM PST by CottShop
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To: Grampa Dave

After reading that post I think I will go throw up now.


24 posted on 12/18/2006 3:27:59 PM PST by unixfox (The 13th Amendment Abolished Slavery, The 16th Amendment Reinstated It !)
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To: Lunatic Fringe
The government on Monday filed civil charges against former Fannie Mae chief Franklin Raines and the mortgage giant's former finance chief and controller, seeking fines and the return of millions in bonus money said to be tied to an improper accounting scheme.

Bump for justice ....

25 posted on 12/18/2006 3:31:17 PM PST by Centurion2000 (If the Romans had nukes, Carthage would still be glowing.)
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To: Lunatic Fringe

Jamie Gorelick got a TON of bonus money from Fannie Mae....MAKE HER GIVE IT BACK!!! I'd really rather charges were filed against her.


26 posted on 12/18/2006 3:43:12 PM PST by Suzy Quzy
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To: unixfox

I should have posted a Barf Bag Warning label.


27 posted on 12/18/2006 3:57:57 PM PST by Grampa Dave (The Bush haters on both sides have elected the government they have dreamed of!)
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To: Lunatic Fringe

About damned time!

Mark


28 posted on 12/18/2006 4:07:51 PM PST by MarkL (When Kaylee says "No power in the `verse can stop me," it's cute. When River says it, it's scary!)
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To: Lunatic Fringe
I still remember the Wall Street Journal flipping out about all the fraud at Fannie Mae in 96 or 97.  No one paid attention until several years later.

And it turns out, they were right on the mark with who was doing what.

29 posted on 12/18/2006 4:30:09 PM PST by Psycho_Bunny
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To: Psycho_Bunny

Jamie Gorelick was there for the entire scandal, what a surprise!

101 charges against Raines? Wow, maybe he'd like to talk a little and cut a deal .... HA HA HA !!!!!

Jamie Gorlick, get out of the country while you still can :)


30 posted on 12/18/2006 7:07:21 PM PST by PA-RIVER
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To: unixfox

Great tagline, and so true.

Gorelick makes me want to puke too. I hope they nail her next, and real soon.


31 posted on 12/18/2006 7:21:13 PM PST by PA-RIVER
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To: CottShop
was there anybody who was clean who was connected with the Clintons?

Yeah, but they are all dead.

32 posted on 12/18/2006 7:37:13 PM PST by Bubba_Leroy (What did Rather know and when did he know it?)
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To: Bubba_Leroy

lol go figure, huh? Amazing how they all kinda just dropped liek flies, committing suicide and all by cutting off their own heads, shooting themselves in the back, and the back of the head, etc http://sacredscoop.com


33 posted on 12/18/2006 8:30:54 PM PST by CottShop
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To: Lunatic Fringe
And may all the corrupt governmentites burn just as brightly. Get rid of them all.

(Well, wait....if we burn them all, there will be few left :P)

34 posted on 12/18/2006 8:41:07 PM PST by FlyVet
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Comment #35 Removed by Moderator

To: PghBaldy

I have been waiting for this for a long time. I thought the creeps would walk away from it. I hope they go to jail for a long time. Culture of corruption indeed.


36 posted on 12/19/2006 4:24:52 PM PST by oldironsides
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To: Lunatic Fringe
The tentacles of the well-connected Gorelick are everywhere in the interlocking directorships world of powerful corporations.

She has a powerful protector and ally and we all know who he is.

He also has a powerful protector and ally in HER.

Let's see if the Big 'Toon can shield her in this particular case. She'll not be indicted unless she's really ratted out by other boardroom members or company executives..

But of course, these corrupt personages will have visions of Ft. Marcy Park dancing in their heads and Madame Jamie will again tiptoe through the snowflakes into the sunshine.

Leni

37 posted on 12/19/2006 4:39:11 PM PST by MinuteGal (The Left takes power only through deception.)
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To: PA-RIVER
I hope they leave Raines alone for a little while. Instead, concentrate on flipping the weaker of the two other lesser lights.

Then, it'll be easier to work Raines over and get him to finger Gorelick, if she's legally or morally culpable in any way.

(......and I'll bet she is. Conspiracy at the most, venality and greed at the least).

Leni

38 posted on 12/19/2006 4:48:15 PM PST by MinuteGal (The Left takes power only through deception.)
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To: MinuteGal
The brains of Raines stay mainly in the drains.

Leni

39 posted on 12/19/2006 4:51:49 PM PST by MinuteGal (The Left takes power only through deception.)
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To: Lunatic Fringe

While the Clinton tie does carry some schadenfreude, I'm just glad whenever I see a huge bank or finance company - getting wealthy by changing the rules and raping struggling families with their usury - get their own. Personally I would not have any objection to rounding up every corrupt executive of every huge bank or mortgage company, lining them up against a brick wall, and... (use your imagination).


40 posted on 12/24/2006 7:10:26 PM PST by Lexinom
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