U.S. SECURITIES AND EXCHANGE COMMISSION
Litigation Release No. 23241 / April 14, 2015
Securities and Exchange Commission v. Richard F. Syron, et al., Civil Action No. 11-cv-9201 (S.D.N.Y.)
Former Freddie Mac Executives Resolve Subprime Disclosure Case with SEC
The Securities and Exchange Commission announced today that the Honorable Richard F. Sullivan of the United States District Court for the Southern District of New York has entered an Order approving a stipulation and agreement between the Commission and defendants Richard F. Syron, the former CEO of Freddie Mac, Patricia A. Cook, Freddie Mac's former Chief Business Officer, and Donald J. Bisenius, a former senior executive in Freddie Mac's single-family guarantee business.
The Order resolves the Commission's case against defendants Syron, Cook and Bisenius arising out of the respective roles each played in Freddie Mac's disclosure of its exposure to subprime mortgage loans between March 23, 2007 and August 6, 2008.
Pursuant to the Order, each defendant, for staggered periods of time (24 months for Syron, 18 months for Cook, and 12 months for Bisenius), is required to refrain from signing certain periodic reports required to be filed with the Commission, 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, each defendant is required to cause the following amounts to be donated (pursuant to Sarbanes Oxley Act Section 308(b)) to the fair fund established in SEC v. Federal Home Loan Mortgage Corp., et al., No. 07-cv-1728 (D.D.C.): $250,000 for Syron, $50,000 for Cook, and $10,000 for Bisenius.