Former Fannie Mae Executives Resolve Subprime and Reduced Documentation Disclosure Case with SEC
The Securities and Exchange Commission (SEC) announced on September 22, 2015 that the Honorable Paul A. Crotty of the United States District Court for the Southern District of New York has entered an Order approving a stipulation and agreement between the SEC and defendants Enrico Dallavecchia, the former Chief Risk Officer of Fannie Mae, and Thomas Lund, Fannie Mae’s former Senior Vice President and head of its single-family guarantee business.
The Order resolves the SEC’s case against defendants Dallavecchia and Lund deriving out of the respective parts each had in Fannie Mae’s disclosure of its exposure to subprime and reduced documentation mortgage loans between December 6, 2006 and August 8, 2008.
Pursuant to the Order, each defendant, for 12 months, is required to abstain from signing certain periodic reports required to be filed with the SEC, is prohibited from signing any certification required by Sections 302 and 906 of the Sarbanes-Oxley Act of 2002, and is prohibited from violating the antifraud and reporting provisions of the federal securities laws, subject to reinstitution of the action for noncompliance. Additionally, OK is required to cause the following amounts to be paid to the United States Treasury: $25,000 for Dallavecchia, $10,000 for Lund.
The SEC litigation against defendant Daniel H. Mudd, the former Chief Executive Officer of Fannie Mae, continues.
For further information about this securities law blog post, please contact Brenda Hamilton, Securities Attorney at 101 Plaza Real S, Suite 202 N, Boca Raton, Florida, (561) 416-8956, by email at [email protected] or visit www.securitieslawyer101.com. This securities law blog post is provided as a general informational service to clients and friends of Hamilton & Associates Law Group and should not be construed as, and does not constitute, legal and compliance advice on any specific matter, nor does this message create an attorney-client relationship. Please note that the prior results discussed herein do not guarantee similar outcomes.
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