Freddie Mac pays record $3.8 million fine: Made ILLEGAL Contrib's to Reeps

[elehhhhna]

Freddie Mac pays record $3.8 million fine

Associated Press

WASHINGTON — The home loan giant Freddie Mac has agreed to pay a record $3.8 million fine to settle allegations it made illegal campaign contributions.

http://www.chron.com/disp/story.mpl/business/3801862.html

[LSK]

1. K & R

[NoAmericanTaliban]

2. Thank God no one went to jail over this

:sarcasm:

[EFerrari]

5. I agree. I have the utmost respect for our system of justice.

:sarcasm:

[bananas]

3. "by far the biggest ever levied by the Federal Election Commission"

"The fine announced today is by far the biggest ever levied by the Federal Election Commission."

You'd think this would get more attention.

[FormerRepublican]

4. So, did Bush actually get any campaign contributions that were legal?

After recent news stories, I seriously doubt it.

[klook]

6. There seems to be no end to Republican corruption

Freddie Mac (Federal Home Loan Mortgage Corporation) is a CONGRESSIONALLY CHARTERED institution!! WTF are they doing lining the pockets of Republican Congress members?

FYI, per wikipedia, Freddie Mac is regulated by the Office of Federal Housing Enterprise Oversight (OFHEO), which is under HUD.

[MissWaverly]

7. since when do federal agencies make campaign contributions

why, oh why, is no one going to jail over this.

[progressoid]

10. That's the first thing I thought too. WTF indeed.

[Mayberry Machiavelli]

8. How can there be no one going to jail over FEDERAL organization money

going to REPUBLICAN campaigns!!!!!!!!

[helderheid]

9. holy moly

[UpInArms]

11. thanks for posting this elehhhhna!

here's some more info:

http://www.citizen.org/pressroom/release.cfm?ID=1557

excerpt:

During the 2002 election cycle, Delk hosted at least 45 fundraising events for federal officeholders and candidates – many with direct oversight of Freddie Mac. While Delk reported absorbing the costs of dinners at most of the fundraising events as in-kind contributions to the officeholders and candidates, he paid significantly discounted prices for the events, according to news accounts, the low-balling of which kept Delk’s total contributions within federal limits. But if the actual value of the events were charged, Delk would have exceeded these limits.

Delk enlisted Epiphany Productions – primarily a Republican fundraising business – to organize these fundraising events. In at least 19 of the events, Epiphany Productions appears not to have been paid by the campaigns for its services, which would constitute an illegal corporate contribution to the campaigns. In at least another 19 Delk fundraising events, Epiphany productions was paid late – up to 20 months late – and apparently only after news stories reported the questionable fundraising activity.

Freddie Mac, a congressionally chartered mortgage lending company, is subject to oversight by the House Financial Services Committee and the Senate Banking, Housing and Urban Affairs Committee. Both committees have conducted a series of hearings regarding the business activities of Freddie Mac, especially since Freddie Mac recently has been drawn into controversy due to financial scandals. More than half (24) of the fundraising events organized by Delk have featured as a special guest U.S. Rep. Michael Oxley (R-Ohio), chair of the House Financial Services Committee, and 19 of these events were held explicitly for the benefit of congressional members with oversight responsibility over Freddie Mac.

"The close fundraising relationship between Freddie Mac lobbyist Delk, Epiphany Productions and the congressional oversight committee is a serious source of concern," said Craig Holman, legislative representative for Public Citizen’s Congress Watch. "Freddie Mac’s lobbyist is out there hosting lavish fundraisers for the same members of Congress who are now deciding the company’s future. This is treading near a quid pro quo."

Whatever legislative favors may have been sought, Public Citizen’s analysis strongly suggests that federal campaign finance laws may have been broken in the process. Delk may have exceeded his individual and aggregate contribution limits in unreported in-kind contributions. The discounted value Delk reported for each fundraiser usually ran between $500 and $750 per event. With the help of his wife, Mandy, who paid $6,600 of the fundraising dinner bills, Mitch Delk was able to keep his reported aggregate contributions of $20,100 to federal candidates and committees in 2002 just under the aggregate annual limit of $25,000. But had Delk reported the true cost of the dinners, which may have been at least twice as much as he claimed, Delk is likely to have exceeded both the individual ($1,000) and aggregate ($25,000) limits.

...more...

http://www.newsmeat.com/fec/bystate_detail.php?st=DC&last=Delk&first=Mitch

Delk, Mitch
Washington, DC 20004
Freddie MAC/Executive

RELY ON YOUR BELIEFS FUND$750
primary06/20/03

Delk, Mitch
Washington, DC 20004
Freddie Mac/Executive

VOLUNTEER PAC$1,000
primary05/29/03

Delk, Mitch Mr
Washington, DC 20016
Freddie Mac/ExecutiveROYCE, ED MR (R)

House (CA 40)
ED ROYCE FOR CONGRESS$500
primary05/14/03

DELK, MITCH
WASHINGTON, DC 20004
FREDDIE MACISAKSON, JOHN HARDY (R)

Senate - GA
GEORGIANS FOR ISAKSON$500
primary04/08/03

Delk, Mitch
Washington, DC 20004
Freddie Mac/Government Relations

AMERICAN LIBERTY POLITICAL ACTION COMMITTEE$1,000
primary03/27/03

Delk, Mitch
Washington, DC 20004
Freddie MAC/Executive

RELY ON YOUR BELIEFS FUND$750
primary03/12/03

DELK, MITCH
WASHINGTON, DC 20004
FEDERAL HOME LOAN MORTAGEBUNNING, JIM (R)

Senate - KY
CITIZENS FOR BUNNING$500
primary03/06/03

DELK, MITCH
WASHINGTON, DC 20004
FREDDIE MACSUNUNU, JOHN E (R)

Senate - NH
TEAM SUNUNU$500
primary03/01/03

Delk, Mitch
Washington, DC 20004
Freddie Mac/Vice President Governme

LEADERSHIP PAC 2006$750
primary01/21/03

Delk, Mitch Mr.
Washington, DC 20004
Freddie Mac/Senior VP Gov. RelationMILLER, GARY G. HON. (R)

House (CA 42)
GARY MILLER FOR CONGRESS$500
general07/09/02

Delk, Mitch
Washington, DC 20004
Freddie MacCAPITO, SHELLEY MOORE (R)

House (WV 02)
SHELLEY MOORE CAPITO FOR CONGRESS$750
general06/30/02

Delk, Mitch
Washington, DC 20004
Freddie Mac/LobbyistYOUNG, TOM (R)

House (AL 01)
TOM YOUNG FOR CONGRESS$500
primary06/24/02

Delk Mitch
Washington, DC 20004
Freddie Mac/sr. vice-presidentHARRIS, KATHERINE (R)

Senate - FL
FRIENDS OF KATHERINE HARRIS$500
primary06/04/02

Delk, Mitch
Washington, DC 20004
PRO-GROWTH ACTION TEAM (R)$500
general06/04/02

DELK, MITCH
WASHINGTON, DC 20004
FEDERAL HOME LOAN MORTGAGETHUNE, JOHN (R)

Senate - SD
JOHN THUNE FOR SOUTH DAKOTA$500
primary05/28/02

Delk, Mitch
Washington, DC 20004
Freddie Mac/Sr. VP of Govt RelationNORTHUP, ANNE M. (R)

House (KY 03)
NORTHUP FOR CONGRESS$500
primary05/07/02

Delk, Mitch
Washington, DC 20004
Freddie MAC/Executive

AMERICANS FOR A REPUBLICAN MAJORITY POLITICAL ACTION COMMITTEE$750
primary03/20/02

...more repuke donations...

[Canuckistanian]

12. It seems Fannie Mae has had some problems, too.

Accounting scandal
In late 2004, Fannie Mae was under investigation for its accounting practices. The Office of Federal Housing Enterprise Oversight released this September 17, 2004 report alleging widespread accounting errors, including shifting of losses so senior executives could earn bonuses from making earnings targets. The difficulty centered around how to account for various interest rate hedges Fannie Mae buys as part of its risk management strategy. When Fannie Mae did not release its third quarter results for 2004, doubts increased.


And some improper funding as well:

Awards
Fannie Mae received a 71% rating in the 2004 Corporate Equality Index by the Human Rights Campaign. Additionally, the company gave a $50,000 grant to the anti-LGBT organization Traditional Values Coalition in 2001 to "to train church leaders to provide homeownership education in the Greater Los Angeles area."

http://en.wikipedia.org/wiki/Fannie_Mae

[eppur_se_muova]

13. Smoley hokes! Glad I told Mom to sell her FRE stock a while back.

Started to get jumpy when news about FannieMae broke, sold before it got worse.