Freddie Mac (FMCC)

[obiterdictum]

Obit, I recall hearing they don't need to file Form 4 when OTC stocks are sold. Any truth to this?

Perhaps that hearing refers to exempted securities and securities that are not registered with the SEC....

However, OTC securities FNMA and FMCC are not exempted securities and are registered with the SEC. An exempted security is defined in the Securities Exchange Act of 1934 in Sec. 3(12)(A). Registered securities are recorded in the SEC EDGAR database. See Section 38 where FNMA and FMCC securities are declared not exempt.

Section 16(a) of the Securities Exchange Act of 1934 governs disclosures and reports of a company's officers and directors, and any beneficial owners of more than ten percent of any class of equity securities.

SEC. 16. DIRECTORS, OFFICERS, AND PRINCIPAL STOCKHOLDERS.
(a) DISCLOSURES REQUIRED.—

i](1) DIRECTORS, OFFICERS, AND PRINCIPAL STOCKHOLDERS
REQUIRED TO FILE.—Every person who is directly or indirectly
the beneficial owner of more than 10 percent of any class of
any equity security (other than an exempted security) which is
registered pursuant to section 12, or who is a director or an officer
of the issuer of such security, shall file the statements required
by this subsection with the Commission.

(2) TIME OF FILING.—The statements required by this subsection
shall be filed—

(A) at the time of the registration of such security on
a national securities exchange or by the effective date of
a registration statement filed pursuant to section 12(g);

(B) within 10 days after he or she becomes such beneficial
owner, director, or officer, or within such shorter
time as the Commission may establish by rule;

(C)if there has been a change in such ownership, or
if such person shall have purchased or sold a security based
swap agreement involving such equity security, before
the end of the second business day following the day
on which the subject transaction has been executed, or at
such other time as the Commission shall establish, by rule,
in any case in which the Commission determines that such
2-day period is not feasible.

10% beneficial ownership of SEC registered equities traded through the OTC ATS (OTCQB and OTCQX) is not exempted from disclosure statutes.

See below the law and an example of OTC securities fraud involving violation of Section 16 of the Securities Exchange Act of 1934.

Securities Exchange Act of 1934 - See Sec. 16
https://www.sec.gov/about/laws/sea34.pdf

Sarbanes-Oxley Act of 2002 - amended the disclosure requirement of the Securities Exchange Act of 1934. See Sec. 403
https://www.sec.gov/about/laws/soa2002.pdf

Form 4 Instructions
https://www.sec.gov/about/forms/form4data.pdf

SEC Complaint - OTC Stock Manipulation - EWRL
https://www.sec.gov/litigation/complaints/2016/comp23511.pdf

Litigation Release No. 23511 / April 7, 2016 - Securities and Exchange Commission v. David Aubel and Robert Raffa, Civil Action No. 16-CV-10670 (D. Mass. filed April 7, 2016)
https://www.sec.gov/litigation/litreleases/2016/lr23511.htm

Stock Broker and Partner Arrested for Microcap Stock Manipulation Scheme
https://www.justice.gov/usao-ma/pr/stock-broker-and-partner-arrested-microcap-stock-manipulation-scheme

Robert Raffa Was Charged in the Federal Court with Securities Fraud
http://www.securitieslawattorneys.net/2016/11/28/robert-raffa/

FBI Report on the EWRL Stock Manipulation Scheme
https://promotionstocksecrets.com/wp-content/uploads/2016/05/4-1.pdf