SEC v. Federal Home Loan Mortgage Corporation, et al. Case No. 07-cv-01728-RCL (D.D.C.)

Oct. 6, 2022

On September 27, 2007, the Commission  filed a complaint against Federal Home Loan Mortgage Corporation (“Freddie Mac” or the “Company”), David W. Glenn (“Glenn”), Vaughn A. Clarke (“Clarke”), Robert C. Dean (“Dean”), and Nazir G. Dossani (“Dossani”) (collectively, the “Defendants”), alleging that the Defendants had engaged in fraudulent conduct that deceived investors about Freddie Mac’s true financial performance, profitability, and growth trends, and that in 2000, 2001, and 2002, the Company misreported its net income in each of those years by 30.5%, 23.9%, and 42.9%, respectively. See Complaint.

The Defendants were ordered, and have paid a total of $50,755,388.00 in disgorgement, prejudgment interest, and penalties.  The Clerk was ordered to hold the funds in an interest bearing account with the Court Registry Investment System (collectively, the “Fund”), pending further order of the Court.  See Freddie Mac’s Final JudgmentGlenn’s Final JudgmentClarke’s Final JudgmentDean’s Final Judgment, and Dossani’s Final Judgment.

On October 25, 2007, the Court appointed a tax administrator, Damasco & Associates LLP to handle the tax obligations of the Fund.

On September 18, 2013, the Court entered an Order establishing a Fair Fund for the $50,755,388.00 paid by the Defendants (“Freddie Mac Fair Fund”), and appointed Gilardi & Co. LLC, as the Distribution Agent to oversee the distribution of the Freddie Mac Fair Fund to injured investors. See Order Establishing Fair Fund and Appointing Distribution Agent.

In connection with a stipulation and agreement between the Commission and the named defendants in SEC v. Richard F. Syron, Patricia L. Cook, and Donald J. Bisenius, Civ. Action No. 11-cv-9201-RJS (S.D.N.Y.), the Freddie Mac Fair Fund also contains $310,000.00 in funds pursuant to a Court order in the Syron case dated April 14, 2015. 

On December 28, 2016, the Court issued an Order approving the Distribution Plan for the Freddie Mac Fair Fund.  The Distribution Plan provides that the Freddie Mac Fair Fund shall be distributed for the benefit of injured investors who purchased Freddie Mac common stock and suffered a Recognized Loss pursuant to the Plan of Allocation. See the Court’s Order and the Distribution Plan.

Proof of Claim Forms can be found at: and must be postmarked by July 10, 2017.

On October 16, 2018, the Court entered an order authorizing the disbursement of $49,979,090.31, plus accrued interest, from the Fair Fund to the Distribution Agent for distribution to harmed investors in accordance with the approved Plan.  See the Court's Order.

For more information, please contact the Distribution Agent:

Gilardi & Co. LLC
Telephone Number: 877-401-1797

Freddie Mac Fair Fund
c/o Gilardi & Co. LLC
P.O. Box 43452
Providence, RI 02940-3452

Last Reviewed or Updated: Jan. 19, 2023