When corporate executives conspire, trust me, they are cooking the books. As a CPA, and accounting practitioner, the internal control system is only good as the honesty of the corporate officers. No fraud would be committed without two or more
people conniving on the scheme.
Read the news about the Fraud.
Study Finds 'Extensive' Fraud at Fannie Mae
Bonuses Allegedly Drove the Scheme
By Kathleen Day
Washington Post Staff Writer
Wednesday, May 24, 2006; Page A01
Fannie Mae engaged in "extensive financial fraud" over six years by doctoring earnings so executives could collect hundreds of millions of dollars in bonuses, federal officials said yesterday in a report that portrayed a company determined to play by its own rules.
Regulators at the Securities and Exchange Commission and the Office of Federal Housing Enterprise Oversight, in announcing a settlement with Fannie Mae that includes $400 million in penalties, provided the most detailed picture yet of what went wrong at the congressionally chartered firm.
Franklin D. Raines received $52.8 million in earnings-related bonuses from 1998 to 2003.
Franklin D. Raines received $52.8 million in earnings-related bonuses from 1998 to 2003.
Fannie Mae,fraud,stocks,breaking-news,Washington Post ,BBC News ,Reuters,technology,business
Wednesday, May 24, 2006
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