Two former senior Taylor, Bean & Whitaker Mortgage Corp executives were sentenced on Friday to several years in prison for their roles in a nearly $3 billion fraud that took down the big lender and a major bank.
The fraud ran more than seven years until August 2009 when TBW collapsed after the the U.S. housing market imploded, taking Colonial BancGroup Inc's (CBCDQ.PK) Colonial Bank with it and putting hundreds of people at the firm out of work.
Company and bank officials were accused of trying to cover up enormous losses by moving money between accounts at Colonial Bank and selling mortgage loans that did not exist, were worthless or already had been sold.
…It is one of the few cases in which prosecutors have been able to penetrate the executive suites of a major firm in the wake of the 2008 global financial crisis. Most prosecutions have involved lower-level employees or much smaller firms.
Desiree Brown, TBW's former treasurer, was sentenced by District Judge Leonie Brinkema to six years in prison after she tearfully acknowledged her wrongdoing. She pleaded to one count of conspiracy to commit bank, wire and securities fraud.
Brinkema also sentenced TBW's former president, Raymond Bowman, to 30 months in prison. He had pleaded guilty to a conspiracy fraud charge as well as for lying to investigators when they raided the mortgage firm two years ago.
[Ed.: Notice - 6 years for one count, 30 months for two counts, inversely proportional to responsibility.]
Brinkema gave lower sentences than sought by prosecutors. One prosecutor, Charles Connolly, urged the stiff penalties be imposed because "there needs to be a message sent to the Street" that the conduct was unacceptable.
The cases are: USA v. Bowman, No. 11-cr-118 and USA v. Brown, No. 11-cr-84 in U.S. District Court for the Eastern District of Virginia.
Author: Jeremy Pelofsky
Saturday, June 11, 2011
Friday, June 10, 2011
There are about 10 seats left. If you haven’t sent in your reg please do so, so we can have your name for your certificates. Names will be sent in later today. If you sign up at the door or send in after today, there will be a delay in your certificate arrival. You can’t beat 4 hours of ed for $20 and the information that will help you stay away from civil action!
When: Monday, June 13th, 2011 – 08:00 am
Where: Silverdale Beach Hotel 3073 NW Bucklin Hill Rd, Silverdale
Instructor: Peter Christensen
Credit: 4 hours each CE, WA State Appraisers
Class Description: The presenter of the CE seminar is Peter Christensen, LIA’s general counsel and director of LIA’s liability prevention resource READI – readimember.org.
The seminar addresses legal claims and issues affecting residential and commercial real estate appraisers. The information is based on actual claims and lawsuits filed against appraisers, including specific cases in Washington. In addition to the interesting facts involved in many of the cases, the seminar provides specific instruction about how appraisers can minimize their risk of being sued and about how to be prepared for such an event if it occurs.
We will also discuss the spike in FDIC litigation and other current appraiser liability problems.