Mortgage News
Former chief of US lender charged with $1.9bn fraud
The former boss of the now bankrupt US lender Taylor, Bean & Whitaker (TBW) has been charged with 16 counts of fraud, worth more than $1.9bn (£1.3bn), according to a BBC report.
Lee Farkas, initially chief executive and then chairman of TBW, was accused of trying to “misappropriate” money from banks and federal institutions.
The indictment also accused Mr Farkas and other unnamed conspirators of trying to obtain money from the government bail out fund, the Troubled Asset Relief Program (Tarp).
TBW ceased operating in August 2009.
Mr Farkas has been charged with conspiracy, bank fraud, wire fraud and securities fraud.
TBW once oversaw some $30bn-worth of residential loans but filed for bankruptcy last August. A government motion seeking Farkas’s detention, suggested the fraud scheme contributed to the failure of TBW.
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