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Fortress’ Daniel Mudd Sued by SEC for Work at Fannie Mae

Daniel Mudd, the chief executive of Fortress Investment Group, “was clouded by the government investigations into his previous employer” reports the New York Times. Mudd joined the Fortress Investment Group in 2009, “nearly a year after the government forced him out as Fannie’s C.E.O.”

FannieMae

“On Friday… the Securities and Exchange Commission charged Mr. Mudd with securities fraud for allegedly understating Fannie’s exposure to subprime mortgages.”

“The S.E.C. filed a civil complaint against Dan Mudd, related to matters associated with his previous employment at Fannie Mae,” said Fortress spokesman Gordon Runte. “The complaint does not relate to Fortress, and this matter has not impacted our company or our business operations. We are undertaking a thorough review of the matters addressed in the complaint.” Mudd has denied the charge saying that “Every piece of material data about loans held by Fannie Mae was known to the United States government and to the investing public.” Mudd said, “The S.E.C. is wrong, and I look forward to a court where fairness and reason — not politics — is the standard for justice.”

According to the New York Times, “The commission also sued two other Fannie executives and three former officials at Freddie Mac.”

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