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.

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