Monday, April 25, 2011
MATTHEW BARAKAT, Associated Press
Submitted by: T. Hawkins
MATTHEW BARAKAT, Associated Press
Submitted by: T. Hawkins
$3 Billion Mortgage Fraud Case Ends in Conviction
[AP] A jury on Tuesday convicted Lee Farkas, the majority owner of what had been one of the nation's largest mortgage companies, on all 14 counts in a $2.9 billion fraud trial that officials have said is one of the most significant prosecutions to arise from the nation's financial crisis.
[excerpt] Prosecutors said Lee Farkas led a fraud scheme of staggering proportions for roughly eight years as chairman of Florida-based Taylor Bean & Whitaker. The fraud not only caused the company's 2009 collapse and put its 2,000 employees out of work, but also contributed to the collapse of Alabama-based Colonial Bank, the sixth-largest bank failure in U.S. history.
The jury returned its verdict late Tuesday after more than a full day of deliberations.
Read Full Associated Press Article
Posted by Editor on 04/25/11 at 07:21 AM •
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