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Thread: Jury convicts exec in $3B mortgage fraud case

  1. #1
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    Jury convicts exec in $3B mortgage fraud case

    Jury convicts exec in $3B mortgage fraud case
    By MATTHEW BARAKAT, AP Business Writer Matthew Barakat, Ap Business Writer
    Tue Apr 19, 7:35 pm ET

    ALEXANDRIA, Va. A jury on Tuesday convicted 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.

    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.

    Colonial and two other major banks Deutsche Bank and BNP Paribas were collectively cheated out of nearly $3 billion, prosecutors estimated. Farkas and his cohorts six of whom entered guilty pleas to related charges and testified against him at the two-week trial in U.S. District Court also tried to fraudulently obtain more than $500 million in taxpayer-funded relief from the government's bank bailout program, the Troubled Asset Relief Program (TARP).

    While TARP at one point gave conditional approval to a payment of roughly $550 million, ultimately neither Taylor Bean nor Colonial received any TARP money, and investigators from that office, along with the FBI and other agencies, helped uncover the fraud.

    Neil Barofsky, who recently resigned as TARP's special inspector general, has called the Farkas case "the most significant criminal prosecution to date rising out of the financial crisis."
    http://news.yahoo.com/s/ap/20110419/...arp_case_trial

  2. #2
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    Broke the Law.

    Prosecuted.

    Guiltym and now jailed.

    Sounds like the system worked.

    Funny how things work out when the law is enforced.

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    Quote Originally Posted by Warfish View Post
    Broke the Law.

    Prosecuted.

    Guiltym and now jailed.

    Sounds like the system worked.

    Funny how things work out when the law is enforced.
    Why bother when we can just print money and bail guys like this out, so they can continue business as usual?

  4. #4
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    Quote Originally Posted by JetPotato View Post
    Why bother when we can just print money and bail guys like this out, so they can continue business as usual?
    Naaa, too expensive. We can just treat this like immigration, and simply not enforce it.

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    Quote Originally Posted by Warfish View Post
    Naaa, too expensive. We can just treat this like immigration, and simply not enforce it.
    Expensive? No such thing! We can print money whenever we need it! Inflation, the value of the dollar, national debt and deficit... none of it matters! Weeeeeeeeeeeeeeeee!!!!!!!!!!!!!!!!!!

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    1- hope they take away his personal assets ala madoff if he knowingly defrauded people...

    2- unlike madoof i hope they force politicians to return any contributions he or his company may have made....

    3- onwards to Fannie/Freddie....

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    Correct me if I'm wrong, but I believe this is the first criminal conviction of an executive involved in the financial collapse.

    It's about damn time.

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    Quote Originally Posted by parafly View Post
    It's about damn time.
    Your efficient and well run Government in action.

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    Quote Originally Posted by Warfish View Post
    Your efficient and well run Government in action.
    How long do you think it should of taken? The amount of evidence and testimony is tremendous, trials aren't easy and this guy was found guilty of all counts.

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    Quote Originally Posted by cr726 View Post
    How long do you think it should of taken? The amount of evidence and testimony is tremendous, trials aren't easy and this guy was found guilty of all counts.
    You tell me, you're the Law Enforcement Professional and supporter of Big Govt.

    How HAS the Govt. done in prosecuting all the claims of rampant lawbreaking on Wall Street during the Housing Crisis, and beyond that, how did they do prosecuting all the GOVT. abuse and lawbreaking during the crisis?

  11. #11
    Conviction and jail is not enough.
    I always liked the Roman concept. Total confiscation of all their property and all the property of their families - houses, cars, everything. A couple changes of clothes they can keep. Anyone to whom they gave money - the same treatment if all monies are not returned. Total ruination.
    That's generous. The Romans tortured and beheaded people screwing the state.

  12. #12
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    Quote Originally Posted by palmetto defender View Post
    Conviction and jail is not enough.
    I always liked the Roman concept. Total confiscation of all their property and all the property of their families - houses, cars, everything. A couple changes of clothes they can keep. Anyone to whom they gave money - the same treatment if all monies are not returned. Total ruination.
    That's generous. The Romans tortured and beheaded people screwing the state.
    Some would say we are now feeding the Christians to the lions, so to speak

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