Freddie Mac Exec Could Face Charges
A top executive from the government-controlled mortgage agency Freddie Mac has reportedly received notice that regulators my file charges against him for violations of securities regulations in the years leading up to the housing collapse. Don Bisenius, the agency’s Executive Vice President, reportedly received a “wells notice” from the SEC informing him that it is considering legal action against him.
The news comes just a few days after former Freddie CFO Anthony Piszel received a similar notice. Piszel served as Freddie Mac CFO between 2006 and 2008 before moving on to the same post at CoreLogic, where he was forced to resign earlier this month.
Both Freddie and its sister agency Fannie Mae have been under investigation since September 2008 for their role in the housing bust. Both agencies have been subpoenaed for documents related to their accounting in connection with the probe. The companies are also under investigation by the SEC and the FBI for possible corporate fraud.
The government-controlled mortgage giants are also reportedly preparing to ask for more federal aid, with Freddie saying it will need $500 million and Fannie requesting $2.6 billion. Freddie recently reported a loss for the sixth quarter in a row.