SEC Investigation Into Freddie Mac Heats Up

The US Securities and exchange Commission has reportedly escalated up its probe of mortgage giant Freddie Mac concerning its disclosures to investors, notifying at least one former official that civil charges will be filed against him.

Freddie’s chief financial officer between 2006 and 2008, Anthony “Buddy” Piszel, has been served with a “Wells notice” from the agency, according to Corelogic, where Piszel now serves as CFO. A Wells notice is a notification that SEC staff members intend to file civil charges.

Corelogic reported the Wells notice on February 10th, and said that Piszel had submitted a resignation, but would stay on until June, adding that he intended to submit a response to the SEC soon. Corelogic has declined to make any further comments on the matter, and Piszel has been unavailable for questions. Likewise, SEC officials have declined requests for comment.

In 2008, Freddie officials announced that the mortgage insurer had been subpoenaed for documents relating to its accounting practices, disclosure policies, and corporate governance since 2007. Fannie Mae, having also required government aid to stave off bankruptcy, is also under investigation.

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