On October 19th the SEC announced that checks totaling more than $356 million were sent in the mail to investors harmed by the financial fraud at Fannie Mae (Federal National Mortgage Association) between 1998 and 2004. With today’s payments, the SEC has distributed more than $3 billion overall since the agency was given authority to send financial penalties from SEC enforcement actions to the victims of financial fraud.

“The SEC is continuing to make highly effective use of the authority provided by Congress in the Sarbanes-Oxley Act to return more money to injured investors as quickly as possible,” said SEC Chairman Christopher Cox. “The $350 million penalty paid by Fannie Mae was one of the largest in Commission history, and now all of it is going to its rightful owners – the victims of this fraud.”

This resulted from an enforcement action in May 2006 in which Fannie Mae was forced to pay $350 million to settle SEC charges that it disclosed materially false and misleading financial statements in SEC filings and in various reports disseminated to investors.

For more info visit the settlement Web site: www.SECFannieMaeSettlement.com 

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