Washington, DC – OFHEO Director James B. Lockhart today announced issuance of a Consent Order against former Freddie Mac Executive Vice President and Chief Financial Officer (CFO) Vaughn A. Clarke.
Mr. Clarke consented to the Order in settlement of an OFHEO administrative notice of charges filed against him on December 17, 2003. That administrative action included allegations of misconduct and unsafe and unsound practices involving, among other things, misapplication of applicable accounting principles in connection with improper earnings management.
The Order contains several requirements, including cooperation with OFHEO in any administrative proceedings against other individuals and payment of a $125,000 civil money penalty to be satisfied when paid to the Securities and Exchange Commission in connection with a settlement reached with that agency. Mr. Clarke also agreed to forego any bonus not yet paid to him by Freddie Mac. Additionally, Mr. Clarke may not accept employment with Freddie Mac and Fannie Mae without the Director’s written permission or accept employment with any federally-regulated financial institution without providing notice of this order to the institution and its regulators. Mr. Clarke served in the position of CFO of Freddie Mac from March 2000 until June 6, 2003, when the Board of Directors accepted his resignation.
OFHEO’s enforcement action against former Freddie Mac Chief Executive Officer Leland Brendsel continues before an Administrative Law Judge. Previous consent agreements entered into with Freddie Mac in December 2003 and September 2005 included a $125 million civil money penalty. OFHEO entered into a consent agreement with former President and Chief Operating Officer David Glenn in October 2003 that included a civil money penalty of $125,000.
Consent Order and Stipulation to Issuance of a Consent Order attached.
Corinne Russell (202) 414-6921 / Stefanie Mullin (202) 414-6376