As we reported earlier, the SEC is suing former Fannie Mae CEO and likely soon to be former Fortress Investment Group CEO. Now, Jonathan Weil at Bloomberg View has a great catch in the SEC’s legal filing. A portion of the suit reads a follows:
“Additionally, during the relevant period Mudd was a member of the board of directors, the audit committee, a regular attendee at the board’s risk policy and capital committee meetings..;”
Another section reads:
“Also, as a member of the audit committee at Fannie Mae and the board of directors, Mudd participated in final committee and board reviews of Fannie Mae’s Forms 10-K and Forms 10-Q during the relevant period prior to certifying.”
The problem? Mudd never served on the audit committee.
In fact, as CEO and thus a member of management and not an independent director, Mudd was restricted by SEC rules from sitting on the audit committee.
It’s unlikely that this slip up will significantly impact the case against Mudd, but it is reasonable to assume that the SEC is not excited to have to deal with factual inaccuracies in what should be a meticulously prepared court filing.
An SEC spokesman has confirmed the errors.
Business Insider Emails & Alerts
Site highlights each day to your inbox.