On March 28th, a federal District Court refused to dismiss the Securities Exchange Act claims filed by the SEC against certain former executives of Freddie Mac. The Court held that the executives were not exempt from the Exchange Act and that the SEC adequately alleged defendants made material misrepresentations concerning Freddie Mac's exposure to subprime loans and adequately alleged defendants' scienter. However, Securities Act claims were dismissed because the SEC did not allege that defendants personally gained money or property from Freddie Mac's stock offerings. SEC v. Syron.