New York (HedgeCo.net) – The Telegraph reports that Lee Farkas, the former head of bankrupt mortgage lender Taylor, Bean & Whitaker, has been charged with fraud in a scheme of over $1billion.
In a 30-page indictment, Farkas is alleged to have siphoned more than $50m from the Florida company for his own “personal financial gain”.
He was charged with 16 counts of fraud, including securities and bank fraud, according to a indictment unsealed in US District Court for the Eastern District of Virginia.
“Farkas, who served as chief executive and later chairman of TBW, and unnamed co-conspirators are accused of trying to misappropriate money from banks as well as federal institutions such as Freddie Mac, and also trying to obtain money from the federal bailout program known as the Troubled Asset Relief Program,” the Telegraph reports.
Alex Akesson
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