Distribution to start in Fannie Mae case

The Securities and Exchange Commission will begin distributing $357 million from its Fair Fund as part of its settlement with Fannie Mae on charges of fraud in connection with the preparation of its annual and quarterly statements.

The Securities and Exchange Commission will begin distributing $357 million from its Fair Fund as part of its settlement with Fannie Mae on charges of fraud in connection with the preparation of its annual and quarterly statements.
The distribution is to be finished by October.
Eligible recipients of the assets include any person or institution that purchased Fannie Mae (FNM) common stock between Jan. 14, 1999, and Dec. 22, 2004, or Fannie Mae Class N preferred stock (FNMprN) between Sept. 25, 2004 and Dec. 22, 2004, according to the court approved distribution plan.
The SEC brought an action against Fannie Mae in May 2006 alleging that, between 1998 and 2004, Fannie Mae issued materially false and misleading financial statements in various reports and in filings with the SEC (InvestmentNews, May 24) .
The final judgment was entered on Aug. 9, and Washington-based Fannie Mae paid approximately $350 million as part of the resolution.
The U.S. District Court of the District of Columbia approved the Fair Fund and its distribution plan on April 16, and appointed Jeffrey D. Dahl, with Minneapolis-based Rust Consulting Inc., as distribution agent.
Further information on the distribution of funds is available at SECFannieMaeSettlement.com .