Fortress CEO Quits Amidst Subprime Probe

Jan 25 2012 | 8:20am ET

Fortress Investment Group CEO Daniel Mudd resigned from the alternative investments giant yesterday, just over a month after he was sued by the Securities and Exchange Commission.

Mudd, who had been on a leave of absence since Dec. 21, is accused, along with other former executives of Fannie Mae and Freddie Mac, 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 government took control of the firm.

Mudd has denied any wrongdoing. But he said that he did “not want the uncertainty associated with a leave of absence, on my part, to become a distraction for either Fortress or investors.”

Fortress has not been accused of any wrongdoing in the Mudd case.

Randal Nardone, co-founder of New York-based Fortress, will remain interim CEO in the wake of Mudd’s departure.

Mudd, who became CEO of Fortress in 2009, also resigned from the firm’s board of directors.

“We regret losing Dan,” Nardone and his fellow co-founders, Peter Briger and Wesley Edens, said. “We want to thank him for his leadership and for his many contributions to Fortress.”


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