The Securities and Exchange Commission brought civil charges Friday against former Fannie Mae CEO Daniel Mudd, 53, former Freddie Mac CEO Richard Syron, 68, and four other ex-officers. The charges were brought in the U.S. District Court in Manhattan.

They are charged with blatantly falsifying the extent of the companies’ exposure to risky home loans from 2006 through 2008. If the court agrees with the SEC, the executives will have to pay back illegal profits and penalties.

Subscribe Now

Access to premium content including in-depth coverage of mutual funds, hedge funds, 401(K)s, 529 plans, and more.

3-Week Free Trial

Insight and analysis into the management, marketing, operations and technology of the asset management industry.