A member of Congress is asking for answers from Freddie Mac about how one of its former employees managed to simultaneously work for the mortgage giant, work as a high-ranking D.C. government official and serve on the Falls Church City Council.
Caroline Lian was fined $25,000 in D.C. and resigned as the deputy director of the District’s Department of Buildings in August after authorities found out she secretly worked a second job at Freddie Mac.
According to records from the D.C. Board of Ethics and Government Accountability, Lian had been working for the D.C. government since October 2022, earning $175,000 a year, but at the same time, she was earning a six-figure salary from Freddie Mac.
Lian joined Freddie Mac in 2015 but never disclosed that to D.C.’s government, officials said. The ethics investigation found Lian telecommuted several days per week for both jobs. Lian no longer works at Freddie Mac.
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"I was horrified. Appalled to hear this story," U.S. Rep. John Rose, a Republican from Tennessee, said via a video call with News4 Monday.
Rose sent a letter to Freddie Mac CEO Diana Reed on Friday urging the federally sponsored company to further investigate how Lian's other positions managed to go unnoticed.
"Freddie Mac is obviously a federal government-sponsored entity. So it would seem that there would be government, federal jurisdiction here. We certainly want to see Freddie Mac do everything possible to sanction Ms. Lian for her fraud and potential fraud here of taxpayers. And we would like to see Freddie Mac recover the losses and potentially hold Ms. Lian accountable in criminal prosecution," Rose said.
In his letter, Rose asks Reed for detailed information, including how much money Lian earned during her employment, how the company will ensure its employees don't have unapproved outside employment and whether Freddie Mac investigated Lian's work after learning she worked as a D.C. official.
"Freddie Mac is an important agency in terms of the work that it does to make housing affordable for all Americans, and anytime you hear of a misapplication or misuse of government resources, or in this case, a government-sponsored entity, you worry about what that ultimately costs Americans," Rose said.
The Arlington County Commonwealth’s Attorney told News4 in August her office was working with local law enforcement to investigate Lian's time on the Falls Church City Council.
A Freddie Mac spokesman said Lian has not worked for Freddie Mac since the beginning of the summer. He said a physical copy of Rose’s letter had not yet reached the company’s office, and offered no further comment.
Lian's last known attorney informed News4 he no longer represents her, and News4 has been unable to reach her for comment.
Rose has a record of controversial votes, and he was one of 147 Republicans in Congress to vote in 2021 against certifying the results of the 2020 presidential election.
Lian is the second high-ranking D.C. government official to be fined and resign after being found to work a second full-time job while on D.C. government time. In April, the head of human resources for the D.C. Public Library was fined $17,500 and also resigned.
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