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Former Taylor Bean & Whitaker CEO indicted for massive fraud

Lee Bentley Farkas of Taylor Bean & Whitaker

by Mike on June 16, 2010

We all knew that something funny was going on at Taylor, Bean & Whitaker. Now we know the Feds think so too:

[Lee Bentley Farkas] The former chairman of a large mortgage lending company has been charged in a $1.9 billion fraud scheme that contributed to the failure of Colonial Bank, one of the nation’s 50 largest banks before it was seized by regulators last year, the Justice Department announced Wednesday.

Court documents said Farkas and co-conspirators at both companies misappropriated more than $400 million from Colonial and about $1.5 billion from a Taylor Bean-owned firm to cover Taylor Bean’s operating losses. Farkas, 57, is also charged with trying to defraud the government out of $553 million in Troubled Asset Relief Program bank bailout funds as the losses mounted.

Actually, when you add that up, it’s closer to $2.5 billion. That’s a whole lot of jail time. In fact, it’s probably a life sentence under federal sentencing guidelines.

What does this mean for those who borrowed money from Taylor, Bean? It’s too soon to say, but it definitely means that any loan documents should be carefully reviewed for evidence of fraud in the origination of the loan, and all servicing records need to be reviewed for evidence of fraudulent charges.

(Photo Source: Marion County Sheriff’s Office)

Want to know more? Contact us at Ricardo & Wasylik, PL.

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