Freddie Mac finds multibillon dollar error

Accounting errors will boost Freddie Mac’s past earnings by as much as $4.5 billion but also probably reduce future profits, the new leaders of the second-largest player in the home-mortgage market said Wednesday.

The big government-sponsored company, which ousted three top executives this month, is under criminal investigation by federal prosecutors as the Securities and Exchange Commission examines its accounting. Company officials took pains to reassure investors that the problems were limited to accounting errors and that its financial condition was sound and its ability to manage risk uncompromised.

The anticipated restatement of $1.5 billion to $4.5 billion for the past three years puts Freddie Mac among the biggest recent corporate accounting debacles.

Agriculture

Farmland wins extension in bankruptcy lawsuit

Farmland Industries has another month to disclose how much of more than $800 million owed it expects to be able to repay to unsecured creditors.

The disclosure plan was to have been filed by next Monday in U.S. Bankruptcy Court. There were no objections to the agricultural cooperative’s fifth request for more time, and the delay until July 31 was granted by Bankruptcy Judge Jerry Venters during a hearing on Tuesday.

In its motion seeking the delay, the nation’s largest farm cooperative said it was in sensitive negotiations over the direction of its remaining pork business.

Taxes

H&R Block settles suit

A Texas judge approved a settlement Tuesday that could cost H&R Block Inc. as much as $262 million, ending one of several class-action lawsuits filed against the tax-preparation firm over its popular “refund anticipation” loans.

Under terms of the settlement, Block will give $26 million in cash to 700,000 Texas customers, along with coupons redeemable over five years for Block services and products. Block also agreed to pay $49 million in legal fees.

The suit charged Kansas City, Mo.-based Block misled its clients when it did not disclose the true costs of the short-term “refund anticipation” loans, offered to customers awaiting income tax refunds.

Deadline

Chamber seeking nominees

The Lawrence Chamber of Commerce is accepting nominations for its Excellence in Commerce awards. The awards program will honor Douglas County companies excelling in one of five areas: manufacturing/distribution; technology; consumer services; professional/business services; and retail.

A sixth award, the Bob Billings Rising Star Award, will be given to an outstanding emerging company.

The deadline for nominations is 5 p.m. July 7. Nomination forms can be found at www.lawrencechamber.com.