twitter linkedin
facebook google+

Mortgage News

News by Subject
Complete list of specialty news sections.

Purchase Subscription
Subscribe to and get immediate access to all news, statistics and archives.

Mortgage Advertising
Reach mortgage executives, loan originators and other people tied to mortgage industry.

Consumer Mortgage News
Free mortgage news for prospective borrowers.

Mortgage Newsletter
Free e-mail newsletter with the latest headlines from

Mortgage News Reprints
Put entire stories in your online or printed newsletter or publication.

Mortgage Feedget RSS code
Condensed stories free on your Web site or for your RSS reader.

News Archives
Archive of stories by month going back to 1999.

Press Releases
Reports and announcements from

Mortgage Statistics
Data and statistics for real estate finance.

Mortgage Directories
Directories of lenders, branch operators and mortgage service providers.

Mortgage Graphs
Directories of lenders, branch operators and mortgage service providers.

home subscribe advertise reprints e-mail help RSS about us LOG IN

Mortgage News


Mortgage News

HOT Topics









site map
Mortgage Lawsuits News | Mortgage Litigation Index
Mortgage industry lawsuit news and mortgage litigation coverage. Stories about legal settlements, judgments and mortgage class actions.

Kingpin Sentenced in Mortgage Crime of the Century

Lee Farkas sentenced to 30 years in prison

June 30, 2011

By staff

The central figure in what has turned out to be the biggest criminal case of the mortgage meltdown is headed for jail and won't emerge until he is 88 years old.

Lee Bentley Farkas was sentenced to 30 years of hard time by U.S. District Judge Leonie M. Brinkema, the U.S. Department of Justice for the Eastern District of Virginia announced. He was also ordered to forfeit $38.5 million.

Farkas was the founder and chairman of Taylor, Bean and Whitaker Mortgage Corp., which collapsed in 2009.

Farkas, 58, was found guilty in April of six counts of bank fraud, four counts of wire fraud and three counts of securities fraud. More than $2.9 billion was involved in the fraudulent secondary scheme.

Under his direction, Colonial Bank financed fake mortgages and covered capital shortfalls using an overdraft scheme.

The defendants allegedly misappropriated more than $1.4 billion from Colonial Bank's mortgage warehouse lending division and approximately $1.5 billion from Ocala Funding. The fraud scheme, which began in 2001 and continued for eight years, led to the collapse of Taylor Bean and Whitaker and the failure of Colonial Bank at a cost of $4.2 billion to the Federal Deposit Insurance Corp.

"Mr. Farkas orchestrated a fraud of staggering proportions, the effects of which are still being felt by the thousands of former employees of Taylor Bean and Whitaker and Colonial Bank, and shareholders of Colonial BancGroup," Assistant Attorney General Breuer said in the news release. "From a $28 million private jet and vacation homes in Maine and Key West, to expensive antique cars and restaurants, Mr. Farkas plundered his company and Colonial Bank to prop up his failing business and to feed his ostentatious lifestyle"

In all, seven defendants have been sentenced in the case.

Other recent activity in the case:
  • Former Taylor Bean CEO Paul Allen sentenced to 40 months in prison

  • Former Taylor Bean president Raymond Bowman sentenced in June to two-and-a-half years in prison.

  • Former Taylor Bean treasurer Desiree Brown sentenced to six years in prison.

  • Former Colonial Bank operations supervisor Teresa Kelly pled guilty in March.

  • Former Colonial Bank senior vice president Catherine Kissick sentenced this month to eight years in prison.

  • Former Taylor Bean financial analyst Sean Ragland sentenced to three months in jail.

United States v. Lee Bentley Farkas.
(U.S. District Court for the Eastern District of Virginia).

United States of America v. Paul Allen.
(U.S. District Court for the Eastern District of Virginia).

United States of America v. Sean Ragland.
(U.S. District Court for the Eastern District of Virginia).

next story

back to current headlines

Corporate Mortgage News
M e r g e r s, a c q u i s i t i o n s and private and public offerings. Other corporate activity including executive appointments, bankruptcies name changes.

Bank news

Secondary Marketing News | Correspondent Lender Directory
Mortgage portfolio trades and forward commitments. Correspondent lending, r e p u r c h a s e s and warehouse news. Secondary marketing statistics and lawsuits.

The Mortgage Graveyard
Failed, closed and a c q u i r e d mortgage-related entities.

Logout forgot

SUBSCRIBERS: Edit Subscription | Subscription Help | or call 214.521.1300

Subscribe Contact Us Site Map

Copyright © 2017 Mortgage Daily, D a l l a s
Subsribers Only:

AMC directory

ARM indexes

mortgage company directory

mortgage regulations

net branch directory

p r i c i n g engine directory

wholesale lender directory

More Mortgage News Resources (full site map):

advertising news

appraisal news

bank news

biggest lenders

commercial mortgage news

corporate mortgage news

credit news

FHA news

financial regulation news

foreclosure news

GSE news

jumbo mortgage news

interest rates

loan modification news

loan originator survey

LOS Newsletter


mortgage associations

mortgage-backed securities

mortgage books

mortgage brokers

mortgage compliance

mortgage conferences

mortgage directories

mortgage education

mortgage employment

mortgage employment index

mortgage executives

mortgage fraud

mortgage fraud blog

mortgage fraud local news

Mortgage Fraud Index

Mortgage Graveyard

mortgage insurance news

mortgage lawsuits

mortgage leads

mortgage lender ranking

mortgage licenses

mortgage litigation

Mortgage Litigation Index

Mortgage Market Index

mortgage mergers

mortgage news

mortgage politics

mortgage press releases

mortgage production

mortgage public relations

mortgage rates

mortgage servicing

mortgage statistics

mortgage technology

mortgage video

mortgage Webinars

net branch

net branch directory

nonprime news

origination news

originator tools

real estate news

refinance news

reverse mortgage news

secondary marketing

social media

servicing news

subprime news

wholesale lenders