Huge penalty sought for ex-Freddie Mac duo

NEW YORK, Dec. 19 (UPI) -- U.S. regulators want to fine two former Freddie Mac executives millions of dollars and make them return bonuses and severance pay.

The charges against the pair are connected with their involvement in the mortgage-finance company's myriad accounting abuses, the Wall Street Journal reported Friday.

The Office of Federal Housing Enterprise Oversight, Freddie Mac's financial regulator, filed administrative charges seeking to force former chief executive Leland Brendsel to surrender about $34 million. This includes a penalty of $5.8 million, $24.4 million in severance and benefits and $3.8 million in bonuses.

It also asked former chief financial officer Vaughn Clarke to give up $3.9 million, including a penalty of $2.6 million, $750,000 in lost severance and $537,000 in bonuses.

Both executives were asked to resign by Freddie Mac in June.

The other Freddie Mac executive who was ousted at the time, chief operating officer David Glenn, agreed earlier to a penalty of $125,000 and to surrender $13 million in compensation.