25 February 2011

More Momentum

The former treasurer of Taylor, Bean & Whitaker Mortgage Corporation, once one of the largest mortgage lenders in the country, admitted to helping run a $1.9 billion fraud scheme that was directed at the government’s Troubled Asset Relief Program and contributed to the failure of Colonial Bank.
The former treasurer, Desiree Brown, 45, pleaded guilty on Thursday in federal court in Alexandria, Va., to wire fraud, securities fraud, and conspiring to commit bank fraud. She also agreed to cooperate with prosecutors in the trial of Lee Farkas, former chairman of Taylor, Bean, on April 4. Ms. Brown also settled civil charges with the Securities and Exchange Commission, the S.E.C. said. [HT: Market Ticker]

It sure is nice to see that the government is continuing to take housing fraud seriously.  Now, this isn’t the end of things by any stretch of the imagination, but it is a continuation of what needs to be done to address the massive amount of fraud that has been perpetrated by the banks, and which helped to create the housing bubble and its eventual collapse. I hope the government continues to address these crimes, and that all those who committed them are punished appropriately.

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