Fortress Chief Mudd Takes Leave In Wake Of Fraud Suit

Dec 21 2011 | 10:45am ET

Fortress Investment Group CEO Daniel Mudd will take a leave of absence from the alternative investments giant just days after he was accused by the Securities and Exchange Commission of fraud during his tenure as CEO of Fannie Mae.

Fortress said that co-founder Randal Nardone will serve as interim CEO, effective immediately.

The SEC filed suit against Mudd and five other former executives of Fannie and fellow government-sponsored mortgage lender Freddie Mac on Friday. The six are accused of making false and misleading statements about the firms' exposure to subprime mortgages.

Mudd was fired by Fannie in 2008, after four years at the helm, when the federal government took control of the firm. He became CEO of Fortress the following year.

"I have requested a leave of absence from my position as chief executive officer to ensure that any time or attention I need to focus on matters outside Fortress will not affect the business or operations of the company," Mudd said in a statement.

Fortress has not been accused of any wrongdoing in the case, and Mudd has denied that he did anything wrong.

"We are grateful to Dan for his service and leadership over the past two and a half years and support his decision to take a leave of absence at this point in time," Nardone said. "Fortress is very well-positioned today, and across our company, we remain single-mindedly focused on managing our investment funds and capitalizing on opportunities to create value for our investors. We look forward to Dan's return in the hope that matters are resolved favorably and expeditiously."


In Depth

Will Liquid Alts’ Performance Sustain Future Asset Flows?

Aug 25 2014 | 10:34am ET

Liquid alternative investment funds saw the highest percentage of capital inflows...

Lifestyle

Hedgies, Economists and Musicians Mingle At Milkin Mixers In Hamptons

Aug 25 2014 | 6:00am ET

Leave it to Michael Milken to bring some gravitas and sweat to the Hamptons -- along...

Guest Contributor

Looking Ahead: What’s In Store For Managed Futures?

Aug 22 2014 | 12:52pm ET

The last five years were phenomenal for investors in equity indices. Will the next...

 

Editor's Note

    Get A Sneak Peak Of The Alpha Pages

    Aug 25 2014 | 11:21am ET

    As many of you know, FINalternatives was recently acquired by the owners of Futures magazine, a firm called The Alpha Pages LLC. Today marks the soft-launch of a new sister site for both publications. As its name suggests, The Alpha Pages will cover all types of alternative investments, going far beyond the more well-known ones such as hedge funds and private equity. Read more…