WASHINGTON — Former Chairman and CEO of Fannie Mae Franklin Raines, former Chief Financial Officer J. Timothy Howard and ex-Controller Leanne Spencer agreed to pay a $31 million settlement to end a case surrounding their roles in a 2004 accounting scandal.
The charges were brought in 2006 by the Office of Federal Housing Enterprise Oversight following a two-year investigation alleging earnings mismanagement, failure to ensure adequate internal controls and the release of misleading financial reports. The oversight office estimated the costs for Raines at $24.7 million, $6.4 million for Howard and $275,000 for Spencer.
In a press statement Director James Lockhart said, "OFHEO's mission is to ensure that the enterprises operate in a safe and sound manner. That cannot occur without corporate management providing prudent and responsible leadership and setting the appropriate ethical and overall 'tone at the top.'"
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