Date Posted:05:24:00 04/25/09 Sat Author:Bobby N. Harmon Subject: FREDDIE MAC CFO, DAVID KELLERMAN, SAID TO HAVE COMMITTED SUICIDE
CV05-00030 - U.S. Dept. of Justice, David C. Farmer, Trustee vs. Bobby N. Harmon - Exhibit: "David Kellermann, Freddie Mac CFO, Said To Have Committed Suicide"
Saturday, April 25, 2009 7:00 AM
From: Bobby N. Harmon
To: "President Barack Obama" , "U.S. Attorney General Eric Holder" , "David Farmer" , "Steven Guttman" , "Carol K. Muranaka" , "Judge David A. Ezra" , "Judith Neustadter" , "Judge Kevin S.C. Chang" , "Judge Barry M. Kurren" , "Securities & Exchange Commission Enforcement Division" , "U.S. Treasury Dept. Office of Inspector General" , "Office of Inspector General US Dept of Justice" , "Executive Office for U.S. Trustees" , "Judge Robert Faris" , "SEC Office of The Inspector General" , "Hawaii State Bar Association" , "Charles Goodwin" , "Hugh Jones" , "Insurance Division Fraud Branch" , "Lawrence Reifurth" , "Linda Lingle" , "Jo Ann Uchida" , "Office of Inspector General Civil Rights Complaints" , "Mark Bennett"
David Kellermann, Freddie Mac CFO, Said To Have Committed Suicide
AP | ALAN ZIBEL and MATTHEW BARAKAT | 04/23/09
UPDATE: 11:55 PM: The Washington Post reports more new information about Kellerman's apparent suicide, including the heartbreaking detail that his wife discovered him hanging from a piece of exercise equipment in the basement.
In addition, he was not immune to some of the recent controversies at Freddie Mac:
He and a group of company attorneys tussled with its regulator in early March as the firm prepared to file its quarterly earnings report with the Securities and Exchange Commission. The group insisted that Freddie Mac inform shareholders of the cost to the company of helping carry out the Obama administration's housing recovery plan.
The regulator urged the company not to do so, according to several sources familiar with the matter. An FHFA official contested that account, saying the regulator did not oppose disclosure but how the information was portrayed in the filing.
UPDATE 11:30 PM: More details have emerged about the last few months of David Kellerman's life. According to the New York Times, he was alarmed by the public outcry over bonuses, he arranged security guards to watch his home.
Then early this month, Mr. Kellermann and other executives at Freddie Mac and Fannie Mae became the focus of intense scrutiny when lawmakers learned they would receive bonuses totaling $210 million. Mr. Kellermann was set to receive $850,000 over 16 months. Reporters and camera crews showed up at his home in Vienna, an affluent Virginia suburb of Washington. Fearing that someone might attack his house, his wife or their 5-year-old daughter, he asked the company for a security detail.
According to colleagues, the usually jovial Kellerman had appeared "stressed and overwhelmed by the job." The Wall Street Journal reports:
"He worked himself into a frazzle," a former co-worker said. Colleagues said Mr. Kellermann was involved in dealing with investigations into Freddie's accounting by the Justice Department and the Securities and Exchange Commission, but that there was no indication he was a target or that the inquiries were causing him anguish.
UPDATE 12:35: SEC, Justice Department investigating accounting practices at the agency:
The Wall Street Journal is reporting that the SEC and the Justice Department have been questioning Freddie Mac "officials" on possible accounting violations. The company made the disclosure in an SEC filing 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.
UPDATE 11:30 AM EST: Treasury Secretary Timothy Geithner issued a statement on acting Freddie Mac CFO David David Kellermann's death:
"On behalf of the Treasury we are deeply saddened by the news this morning of David Kellermann's death. Our deepest sympathies are with his family and his colleagues at Freddie Mac during this difficult time."...
Dear President Obama, Attorney General Holder, Mr. Farmer; Mr. Guttman; Ms. Muranaka; Judge Ezra, Judge Chang, Judge Kurren, and All Concerned:
Due to the discovery of new facts in this case, I am adding the subject Exhibit as it relates to your lawsuit which violates my Constitutional Rights of Free Speech and a Fair Trial, and Federal and Hawaii Anti-SLAPP statutes.
In view of all the facts that I have presented in this and hundreds of other Exhibits and witness descriptions, it is beyond comprehension that former Attorney General Alberto Gonzales; Assistant U.S. Trustees Curtis Ching, Gayle Lau and Carol Muranaka; Judges Eden Hifo (fka Bambi Weil), Kevin Chang, David Ezra, Barry Kurren, Lloyd King and Robert Faris, and Trustees Mary Lou Woo, James Nicholson and David C. Farmer; the American Arbitration Association arbitrator Judith Neustadter Fuqua, and attorney Steven Guttman can still claim that they were non-conflicted, fair, impartial, and unbiased in this case.
Mr. Farmer, in spite of all this factual evidence (not just "political opinions" or "conspiracy theories" as you have alleged before), I am again asking that we attempt to reach a global settlement of this matter through confidential negotiation or mediation rather than continuing these costly and seemingly-endless court proceedings.
If you, and your insurance carriers, are still NOT willing to attempt to negotiate or mediate a settlement, then I ask that you perform your mandated review of this new Exhibit in accordance with Judge Ezra's Order, and advise me if you find it contains any so-called "protected subject matter", and whether or not you intend to OBJECT to my filing a Motion to reopen this case.
Mr. Farmer, I respectfully request your immediate reply. If I do not receive a response from you or your insurance carrier within 15 days, I will assume that you have found no "PSM" in these updated pages, and that you will NOT file any objections to my Motion.