President-elect Obama's newly-appointed chief of staff, Rahm Emanuel, served on the board of Freddie Mac at a time when scandal was brewing at the troubled agency.....the board failed to spot "red flags," according to government reports reviewed by ABCNews.com. An SEC complaint claims Freddie Mac misreported profits by billions of dollars in order to deceive investors circa 2000-02.
http://abcnews.go.com/Blotter/story?id=6201900&page=1