Bank Acquitted in Charges of Selling Fannie Bad Mortgages. Abacus Federal Savings Bank was acquitted of grand larceny and conspiracy charges earlier this month from a case bought by the New York District Attorney’s office that involved Fannie Mae. Following a four-month trial, a New York jury acquitted Abacus and two of its senior offices. The Manhattan-based bank, which primarily serves Chinese-Americans in the New York area, was accused of falsifying documents and selling faulty mortgages to Fannie from 2005 to 2010. Freddie Says Look Out for IRS Rejection Messages. To ensure the quality of loans sold to Freddie, the GSE says sellers and servicers must take all appropriate steps to clear red flags typically found in fraud schemes focused...