Former FHLB Regulator Sentenced InFundraising Case

July 13, 2005, 1:00 a.m. EDT 1 Min Read

WASHINGTON - (07/13/05) -- John Korsmo, the former chairman ofthe Federal Housing Finance Board, was sentenced to 18 months ofunsupervised probation and fined $5,000 for a felony count ofmaking false statements to the Senate Banking Committeeinvestigating his role in a 2002 political fundraiser. Korsmodenied knowing how solicitations for a $500-a-plate fundraiser onbehalf of House candidate Rick Clayburgh, a North DakotaRepublican, were sent to Federal Home Loan Bank presidents, eventhough Korsmo's wife apparently obtained the information and sentthe invitations. As part of his sentence, Korsmo agreed not to workin the executive branch for 10 years and because he is now aconvicted felon, must provide DNA samples to lawenforcement.

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