The FBI is reportedly investigating Fannie Mae and Freddie Mac for fraud in connection with the September 2008 economic crisis on Wall Street. The FBI says that the fraud investigation is in its initial stages and is one of 26 financial firms being investigated in connection with the mortgage crisis.The New York Times: F.B.I. Looks Into 4 Firms at Center of Turmoil (September 23, 2008) In 2006, the SEC determined that Fannie Mae executives had engaged in "extensive fraud" and fined the entity $400 million.The Washington Post: Study Finds 'Extensive' Fraud at Fannie Mae (May 24, 2006)

In 2006, Fannie Mae was fined $400 million for using accounting procedures that gave a more optimistic picture of the financial health of the mortgage giant than was actually the case. The probe found that a weak board of directors allowed Fannie Mae's chief executives at the time, Franklin Raines and J. Timothy Howard, to receive huge financial bonuses based on the supposed financial health of the company.The Washington Post: Study Finds 'Extensive' Fraud at Fannie Mae (May 24, 2006)

"“[T]he F.B.I. will pursue these cases as far up the corporate chain as is necessary to ensure that those responsible receive the justice they deserve.”—Robert S. Mueller, FBI Director