Housing Market Fraud
May 27th, 2006
Written By: Adam Sussman
My buddy Greg Hartnett had a blog post about the executives at Enron getting convicted for their fraudulent business tactics. I posted a quick response on his blog that it makes me wonder what else is going on, say in this hyped up housing market?
Well, it looks like some new news is now being reported about one of America’s giant governments-sponsored mortgage company, Fannie Mae. A 340 page report was published on May 24th from American regulators stating Fannie May had been overstating their profits from 1998 - 2004 and has been fined $400 Million Dollars.
This overstating of profits allowed Franklin Raines, the former CEO to get paid $90 Million Dollars for his great work.
I don’t have my hands on that reports but I am sure there are some juicy nuggets of information talking about how this company lied about their earnings to increase its value.
Source: Economist May 27, 2006 – A ton of bricks
May 31st, 2006 11:20
Here’s the report, dude. I don’t have time to read it, but let me know if you find anything good.
May 31st, 2006 11:28
Hi Nev, thanks for posting this link! This is a great find. As I have been so busy with work, I have fallen behind the past few weeks on things I want to read. I am not sure if I will be able to get to this one either.