Probe Into Fannie Mae, Freddie Mac Widens

WashPost ^ | 9-30-08 | Zachary Goldfarb

[SweetCaroline]

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[SweetCaroline]

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[gussiefinknottle]

you forgot david gregory’s wife, beth wilkerson.

[AFreeBird]

Ah, so in other words: he'd gladly sign up to take one (or a thousand) for the team.

We're waiting Bwaney.....

[penelopesire]

Lots of info here to mine:

REPORT TO THE PRESIDENT
CORPORATE FRAUD TASK FORCE
2008

http://www.usdoj.gov/dag/cftf/corporate-fraud2008.pdf

Quite a few things on sub-prime stuff:

Here is one report:

Federal Home Loan Mortgage Corporation (Freddie Mac)
On September 27, 2007, the Commission filed a settled enforcement action charging Freddie Mac with securities fraud in connection with improper earnings management. The Commission’s action also charged former Freddie Mac executives David W. Glenn, its former president, COO, and vice-chairman of the board; Vaughn A. Clarke, its former CFO; Robert C. Dean, a former senior vice president; and Nazir
G. Dossani, a former senior vice president. The Commission alleged that Freddie Mac engaged in a scheme that deceived investors about its performance, profitability, and growth trends and that the company misreported its net income in 2000, 2001, and 2002. In its settlement with the Commission, Freddie Mac agreed to pay a $50 million penalty. Glenn, Clarke, Dossani, and Dean agreed to pay penalties of $250,000, $125,000, $75,000, and $65,000, respectively, in addition to disgorgement.

Another one Here:

Securities and Exchange Commission
American International Group, Inc.
On February 9, 2006, the Commission filed settled charges against American International Group, Inc. (AIG) for securities fraud, alleging that AIG misled investors about its financial results by entering into sham reinsurance transactions. The settlement required AIG to pay a penalty of $100 million and disgorge ill-gotten gains of $700 million.

Another one here:

MCA Financial Corp.
MCA Financial Corp., based in Southfield, Michigan, was a privately held mortgage company that made conventional and subprime loans to individual homebuyers in Michigan and several other states. MCA was also a mortgage and land contract broker and servicer. MCA defrauded both its investors, who purchased MCA’s bonds and mortgage-backed securities, and institutional lenders by misrepresenting its true financial condition in financial statements that were regularly filed with the SEC. As the result of paper transactions involving low-income housing in the City of Detroit between MCA and numerous off-book partnerships controlled by MCA’s top two executives, tens of millions of dollars in sham assets and revenues were booked. Seven former MCA executives, including its chairman and CEO, president and COO, CFO, and controller, were convicted in the Eastern District of Michigan of conspiracy, wire fraud, mail fraud, bank fraud, and filing false statements with the SEC. Their sentences, the last of which were imposed in 2006, ranged from 10 years’ imprisonment, for the former chairman, to 12 months of alternative confinement, for a senior vice president who cooperated. The defendants were also ordered to pay restitution, jointly and severally, to investors and lenders in the amount of $256 million.

BIG SECTION ON MORTGAGE FRAUD TOO.

[surrey]

I just had a conversation with the vp of our little town bank. She said they have to make examples of some of these crooks just like they did with Martha Stewart.
She’s a little frustrated that “all banks “ seem to be getting the blame from people. This bank is very conservative and doesn’t give out mortgages easily. She said you would be amazed at how many people come in looking for a mortgage that they’ll have a tough time paying. This bank won’t give it to them. The town is filled with waterfront McMansions and I’m sure many of these will be on the market.

[april15Bendovr]

Laurie Mylroe would be a good person to consult on this topic.

[penelopesire]

We need to be looking into this...THEY ARE BASED IN ILL.

U.S.
Attorney’s Office for the Northern District of Illinois
Mercury Finance Company
Mercury Finance Company was a NYSE-listed subprime lending company. As a result of an extensive accounting fraud scheme designed to inflate the company’s revenues and to understate its delinquencies and charge offs over several years, the market capitalization of the company decreased by nearly $2 billion in one trading day after the existence of the fraud was publicly announced. Commercial paper purchasers also eventually lost about $40 million and longer term lenders lost another $40 million. The former CFO admitted his role in the fraudulent scheme and cooperated with the investigation, but he died unexpectedly before charges were brought. John Brincat Sr., the former CEO and chairman of the board of directors of the company, pled guilty to wire fraud and conspiracy in connection with the scheme. On May 23, 2007, Brincat was sentenced to 10 years in prison. Previously, Bradley Vallem, the former treasurer of the company, pled guilty to engaging in the accounting fraud scheme, agreed to cooperate and received a
1.6
Corporate Fraud Task Force Member Contributions
20-month sentence. Lawrence Borowiak, the former accounting manager, pled guilty to trading Mercury Finance Company stock on inside information, agreed to cooperate, and received a sentence of 12 months in prison.

“AN ‘UNEXPECTED DEATH’ OF THE CFO”
???
Will see what I can find.

[STARWISE]

Great link .. thank you.

~~~~

Keep passing this on .. the idiot, crooked Rats
would pay a dollar to lie if the truth were free.

***Shocking Video Unearthed Democrats in their own words Covering up the Fannie Mae, Freddie Mac Scam that caused our Economic Crisis (2004)***

http://uk.youtube.com/watch?v=_MGT_cSi7Rs

[Eroteme]

That’s how far back it goes NOW. You’ve got to start somewhere. If this is a serious investigation, they will then expand the search if the evidence suggests they need to. Of course, the key phrase there is “serious investigation.” But, for now, they seem to be going about this in a deliberate, methodical fashion and that’s a good thing.

Exactly. They've got to start somewhere. In any criminal enterprise, especially one at this level, complexity, and sophistication, you've got to reverse engineer the operation...take it apart piece by piece working backwards in time.

I too see this investigation as a good thing. As they acquire the necessary pieces of evidence and flip the witnesses they've got the basis for more subpoenas, earlier dates, etc. Sorting the players and events in order of most-recent back to its genesis reveals patterns necessary to proving institutional fraud, especially the systemic built-in nature of the coverup and its origins at the highest levels. It's how good criminal cases are built.

[polymuser]

I don’t know that traitorous members of Congress can be prosecuted for their official acts.

Impeachment or censure.

[april15Bendovr]

Metaphorically speaking this old movie image shows well how successful so far the Democrats are at putting the blame on the Republicans.

Can anyone guess the movie?

[STARWISE]

Details - Borowiak

http://classaction.findlaw.com/cases/securities/sec/sec1/files/1999/lr16296.html

[a6intruder]

The Bridges at Toko Ri?

[verity]

Stalag 17.

[STARWISE]

Right ... seems rather unlikely right now ... ;(

[singfreedom]

It was obviously a conspiracy to defraud. Isn’t that what is required for a RICO suit—a criminal conspiracy?

[april15Bendovr]

Here is the Democrat

[singfreedom]

That’s when the actual damage was done. Why would they investigate SINCE 2007. That would be an expensive pointless exercise.

[april15Bendovr]

Verity was right