GSEs (Fannie/Freddie),FHA&HUD

Ex-Freddie Mac C.F.O. May Face Civil Charges

Posted on Thursday, February 17, 2011

A former chief financial officer of Freddie Mac has been notified by securities regulators that they may soon file civil charges against him, stemming from his tenure at the mortgage finance company, according to a public filing.
Anthony Piszel, known as Buddy, who was Freddie Mac’s chief financial officer from 2006 to 2008, received a so-called Wells notice from the Securities and Exchange Commission, an indication that the agency was considering an enforcement action against him.
The S.E.C. has been investigating Freddie Mac and its sister company, Fannie Mae. Both companies acknowledged receiving subpoenas in 2008 from the S.E.C. and a federal grand jury. The government has been examining Freddie Mac’s accounting and disclosure practices.
Fannie Mae and Freddie Mac were public companies that operated with a Congressional mandate to foster homeownership. The companies purchase home loans from lenders, which can then use the money to offer new loans to consumers. When the two agencies were drowning in hundreds of millions of dollars in risky mortgages acquired at the height of the real estate bubble, the government rescued them from the brink of collapse.
Mr. Piszel left Freddie Mac when the federal government placed the two agencies in conservatorship in September 2008. He later became chief financial officer at CoreLogic, a financial data firm.
Mr. Piszel resigned from CoreLogic last week after receiving the Wells notice, the company said in a regulatory filing. The notice is “in connection with certain disclosure matters during” his time at Freddie Mac.
Mr. Piszel could not be immediately reached for comment on Wednesday evening.
The Financial Times reported Mr. Piszel’s Wells notice on its Web site on Wednesday.
“While we appreciate Buddy’s contributions during his tenure at CoreLogic, after careful consideration of these developments, our board of directors, Buddy and I decided it would be in the best interest of the company for Buddy to leave CoreLogic to focus on his response to these issues,” Anand Nallathambi, president and chief executive, said in a statement.
Mr. Piszel was succeeded at Freddie Mac by David Kellermann. Mr. Kellermann died in April 2009, apparently in a suicide.
THE NEW YORK TIMES, By BEN PROTESS; Chris Greenberg/Bloomberg News


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