Mortgage

Out of jail mortgage scammer Lee Farkas is serving 9 years out of 30

A U.S. judge ordered the compassionate release of Taylor, former Bean & Whitaker chairman and CEO Lee Farkas, as COVID-19 transmission is vulnerable in prison. Farkas ran a mortgage fraud program from 2002 until the property crash in 2009.

In total, Farkas and his co-conspirators misused $ 2.9 billion in funds – $ 1.5 billion from Ocala Funding and $ 1.4 billion from the inventory division of Colonial Bank, two companies related to it Time controlled by TBW.

To cover up over $ 100 million in overdrafts, TBW sold fake pools of loans, fake mortgages, and loans that had already been sold to other investors to the two subsidiaries.

TBW was closed in August 2009 and around 2,000 people were unemployed. Ocala stuttered and filed for bankruptcy in 2011, while Colonial closed on August 14, 2009 and went under FDIC control. PwC was then found negligent in its audits of Colonial Bank and had to pay $ 625 million in damages.

Farkas was tried and convicted of 14 fraudulent cases and sentenced to 30 years in prison in 2011. The other TBW executives involved pleaded guilty and were sentenced to between three months and eight years in prison.

Alexandria, Virginia District Judge Leonie Brinkema, who oversaw the original trial in 2011, said the outbreak of coronavirus cases at Coleman Low Security Prison in Wildwood, Florida, where Farkas was incarcerated, coupled with his age and health issues, was reason enough to to justify early release.

When Brinkema met opposition from the prosecutor, she said in her decision that she was "not at all concerned that the interests of justice are not served". She noted, "Yes, it was a major financial crime, but he wasn't the only person involved in this type of crime," according to the Orlando Sentinel. Farkas must be quarantined for two weeks before being placed in the care of his sister in Albuquerque, New Mexico.

"I think it's great that Lee has obtained an early release," Bruce Rogow, the attorney who represented Farkas in 2011, told NMN in a statement. "His sentence was the result of a bad economic period in the country and he deserves to be free again."

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