There's a new twist in today's tragic death of Freddie Mac's Chief Financial Officer. David Kellerman committed suicide early this morning, and the Wall Street Journal is now reporting that the SEC was investigating Freddie Mac's books:
Mr. Kellermann's job made him responsible for financial controls and reporting at Freddie Mac, which is based in nearby McLean, Va. He had been with the company for more than 16 years, starting as a financial analyst and auditor in 1992, according to the company's Web site.
Investigators from the Securities and Exchange Commission and Justice Department have been questioning officials of Freddie Mac about possible accounting violations and other matters in recent months, the company disclosed in March.
Freddie disclosed in the recent SEC filing that in September it received a federal grand jury subpoena from the U.S. Attorney's Office for the Southern District of New York seeking documents related to accounting, disclosure and corporate-governance matters. That subpoena was later withdrawn, Freddie has disclosed, and the investigation was taken over by the U.S. Attorney's Office for the Eastern District of Virginia.
"We know of no connection between this terrible personal tragedy and the ongoing regulatory inquiries discussed in our recent SEC filing," said David Palombi, Freddie's chief spokesman.