Wednesday, April 22, 2009

Freddie Mac's CFO Found Dead

Written By: Madeleine Brooks

Breaking news this morning, April 22, 2009, Freddie Mac's Chief Financial Officer, David Kellerman, was found dead in his home early this morning. Freddie Mac is a government sponsored enterprise that was created in 1970. Freddie Mac expanded the secondary mortgage market by buying mortgages on the secondary market and sells them as mortgage-backed securities for people who are in investing in the open market.

David Kellerman was Freddie Mac's CFO and was in charge of the company's financial controls. David was working at the company for 16 years as an auditor in 1992. Before becoming the chief financial officer, David Kellerman also had job positions such as Freddie Mac's controller and principal accounting officer. The Securities and Exchange Commission (SEC) have been investigating Freddie Mac's financial statements and seeing that there are possible accounting violations that were produced for the first quarter of this year.

Freddie Mac had disclosed in its recent SEC filing that the company received a subpoena from the U.S. Attorney's Office searching documents pertaining to accounting and the disclosure of corporate-government matters. The subpoena was later withdrawn and Freddie Mac disclosed that information and it got turned over to the U.S. Attorney's Office in Virginia, where David Kellerman lives.

David Kellerman's wife reported to the local police that his death was a committed suicide. The police are doing a full investigation on the possible death of David Kellerman. David Kellerman is assumed to most likely have had a meltdown in regards to the $60 billion bailout and the accounting errors representing Freddie Mac.


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