Ex-Finance Board Chief PleadsGuilty

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WASHINGTON - (03/24/05) -- John Korsmo, a former chairman ofthe Federal Housing Finance Board, agreed Tuesday to plead guiltyto making false statements to a U.S. Senate committee and an agencyinspector general who was investigating his role in a congressionalfundraiser held three years ago. Korsmo resigned from the FinanceBoard, the chief regulator of the Federal Home Loan Banks, in March2004. The Senate committee and Finance Board's Inspector Generalwere investigating whether. Korsmo violated any laws by lending hisname to a political fundraiser for fellow North Dakotan RickClayburgh. Federal Home Loan Bank presidents were invited to thefundraiser for Clayburgh, who was running for a seat in the House.Korsmo told the committee and the IG that he did not know howClayburgh's campaign obtained contact information for the FHLBpresidents.

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