Three former senior executives of Fannie Mae lost a bid on Friday to dismiss civil-fraud charges filed against them last year by the Securities and Exchange Commission over allegedly misleading investors about the quality of loans the mortgage giant guaranteed in the run-up to the housing bust.
The executives include Daniel Mudd, the former chief executive of Fannie Mae who in January resigned as chief executive of Fortress Investment Group LLC. They argued that the SECs case should be dismissed because they provided detailed disclosures about the loan characteristics to investors.
‘Enforcement 40’ for 2020
Join Us On LinkedIn
Join the Securities Litigation and Enforcement Group on LinkedIn