Brendsel to Disgorge $10.5M Under OFHEO Pact

Former Freddie Mac chairman and chief executive Leland Brendsel has agreed to disgorge $10.5 million in salary and bonuses to settle an administrative enforcement action by the Office of Federal Housing Enterprise Oversight.Mr. Brendsel also agreed to pay the U.S. government $2.5 million and waive claims against Freddie for $3.4 million in additional compensation in settling allegations that the government-sponsored enterprise allowed improper earnings management under his leadership. The former CEO was ousted by Freddie Mac's board of directors in 2003 after an internal investigation discovered that the company had understated profits by $5 billions to show steady and increasing earnings. OFHEO charged Mr. Brendsel with operating the GSE in an unsafe and unsound manner.