Taylor Bean’s Demise Exposed in SEC Case Against Former CEO
ByPosted To: MND NewsWire
The SEC has charged another former mortgage executive with fraud in a scheme intended to scam at least $1.5 billion from private investors and the U.S. Treasury's Troubled Asset Relief Program (TARP). According to the SEC complaint , Lee Farkas, former chief executive officer and chairman of Taylor, Bean & Whitaker (TBW) Mortgage Corporation, "engaged in a pattern of fraudulent conduct" for the purpose of selling at least $1.5 billion of fictitious and impaired residential mortgage loans to Colonial Bank. Those loans were then falsely reported by Colonial to the investing public as high-quality, liquid assets, which allowed Colonial Bank to misrepresent that it had satisfied a prerequisite necessary to qualify for TARP funds. Upon announcing it had obtained approval receive…(read more)