The former chief executive of Freddie Mac may face a civil action as the government ramps up an investigation of disclosure practices at the mortgage finance giant and its sister company, Fannie Mae, The New York Times reported Wednesday, citing people briefed on the investigation.
The executive, Richard Syron, a former president of the American Stock Exchange and now an adjunct professor and trustee at Boston College, has received a so-called Wells notice from the Securities and Exchange Commission, an indication the agency is considering an enforcement action against him.
According to the paper, Syron, who has not been accused of any wrongdoing, is the latest executive mentioned in the government's sweeping examination of the two government-controlled companies. Three others have already been sent Wells notices, and at least two others are thought to have received them, the people briefed on the investigation said. Last week, Daniel Mudd, the former chief executive of Fannie Mae, received a Wells notice, and another former Fannie executive is expected to receive one as well, these people said.