Related Cos. Named in Federal Probe of Fannie Mae

WASHINGTON, DC—The Wall Street Journal reports that, according to unidentified government officials,  the Related Cos. of New York City has been named in a federal Inspector General’s investigation of a business transaction with Fannie Mae.

The WSJ reports the subpoena to Related includes questions about whether the developer had discussed employment opportunities with Fannie officials,

A Related spokeswoman told the WSJ  the joint venture, structured by Fannie, has no employees.

The WSJ reports anonymous government sources told the newspaper Fannie placed at least four employees on administrative leave after learning of the investigation.

The investigation is being carried out by the inspector general of the Federal Housing Finance Agency, the regulator that oversees Fannie Mae and Freddie Mac.

The WSJ reports officials from the U.S. Attorney's Office for the Eastern District of Virginia are also involved.