Freddie Mac Announces Receipt Of "Wells Notice" From SEC Staff
|August 20, 2004|
McLean, VA – Freddie Mac (NYSE:FRE) today announced that it has received a "Wells Notice" from the staff of the Securities and Exchange Commission ("SEC"). The Wells Notice advises the company that the SEC staff is considering a recommendation that the SEC initiate a civil injunctive action against the company for possible violations of the federal securities laws, including Section 10(b) of the Securities Exchange Act of 1934 and the SEC's Rule 10b-5, as well as Sections 17(a)(1), (2) and (3) of the Securities Act of 1933. The Wells Notice indicates that in connection with the contemplated action, the SEC staff may seek a permanent injunction and a civil money penalty.
As previously disclosed, Freddie Mac has been cooperating with the SEC's investigation and will continue to do so as we evaluate the manner in which we will respond to the receipt of the Wells Notice
Source: Freddie Mac