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bdk
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Joined: 24 Mar 2008
Posts: 1611
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Jury Convicts Executive in Mortgage Fraud Case
PostPosted: Wed Apr 20, 2011 3:43 pm Reply with quoteBack to top

Jury Convicts Executive in Mortgage Fraud Case

By NICK TIMIRAOS and ERIC MORATH

A jury delivered Tuesday one of the first major criminal convictions of a mortgage executive stemming from the mortgage bust.

Lee Farkas, the former chairman of Taylor, Bean and Whitaker Mortgage Corp., was found guilty on all 14 charges stemming from a seven-year, multibillion-dollar fraud scheme that led to the collapse of his firm and Colonial Bank. Mr. Farkas, who owned airplanes, several homes and dozens of cars, could spend the rest of his life in prison.

Mr. Farkas's attorney, William B. Cummings, declined to comment on the verdict Tuesday but said he was working to keep his client out of jail....

http://online.wsj.com/article/.....62604.html

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mortgagemess
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Joined: 09 Jan 2008
Posts: 561

Re: Jury Convicts Executive in Mortgage Fraud Case
PostPosted: Wed Apr 20, 2011 5:18 pm Reply with quoteBack to top

WOW.. BIG DEAL..one headline of ONE guy in a trillion dollar scheme that nearly destroyed the US Economy and has kept this country on the brink of a depression for the last 4 years..in the MEANTIME the dozens of other crooks continue to enjoy a counry club lifestyle and $1000 rounds of golf thanks to golden parchutes, undeserved bonus money and the cooperation of the US government through its agencies and bailout dollars...

bdk wrote:
Jury Convicts Executive in Mortgage Fraud Case

By NICK TIMIRAOS and ERIC MORATH

A jury delivered Tuesday one of the first major criminal convictions of a mortgage executive stemming from the mortgage bust.

Lee Farkas, the former chairman of Taylor, Bean and Whitaker Mortgage Corp., was found guilty on all 14 charges stemming from a seven-year, multibillion-dollar fraud scheme that led to the collapse of his firm and Colonial Bank. Mr. Farkas, who owned airplanes, several homes and dozens of cars, could spend the rest of his life in prison.

Mr. Farkas's attorney, William B. Cummings, declined to comment on the verdict Tuesday but said he was working to keep his client out of jail....

http://online.wsj.com/article/.....62604.html
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rockford
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Joined: 01 Dec 2008
Posts: 99
Location: Southeast

I told you so
PostPosted: Wed Apr 20, 2011 5:28 pm Reply with quoteBack to top

I had no idea it was to that extent but I knew there was rotten stuff going on

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quikpik101
Flash in the pan


Joined: 12 Jul 2009
Posts: 48

Re: Jury Convicts Executive in Mortgage Fraud Case
PostPosted: Wed Apr 20, 2011 6:05 pm Reply with quoteBack to top

I used to be a Director of REO for TBW. If you guys only knew the extent of it, you would be shocked. He knew exactly what he was doing, and I personally saw alot of things going on there that they never brought up in court. They just tried him on the 14 main counts but if they would have nailed him for everything it would have made Madoff look like a common burglar.
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MortgageDrummer
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Joined: 19 Nov 2008
Posts: 310

Re: Jury Convicts Executive in Mortgage Fraud Case
PostPosted: Thu Apr 21, 2011 1:20 pm Reply with quoteBack to top

Really, no kidding, just one? Like that's going to change anything.. so sad, to bad for him.. but really how does this change anything? Just a few more houses, boats, cars and toys for sale at a garage sale...

mortgagemess wrote:
WOW.. BIG DEAL..one headline of ONE guy in a trillion dollar scheme that nearly destroyed the US Economy and has kept this country on the brink of a depression for the last 4 years..in the MEANTIME the dozens of other crooks continue to enjoy a counry club lifestyle and $1000 rounds of golf thanks to golden parchutes, undeserved bonus money and the cooperation of the US government through its agencies and bailout dollars...

bdk wrote:
Jury Convicts Executive in Mortgage Fraud Case

By NICK TIMIRAOS and ERIC MORATH

A jury delivered Tuesday one of the first major criminal convictions of a mortgage executive stemming from the mortgage bust.

Lee Farkas, the former chairman of Taylor, Bean and Whitaker Mortgage Corp., was found guilty on all 14 charges stemming from a seven-year, multibillion-dollar fraud scheme that led to the collapse of his firm and Colonial Bank. Mr. Farkas, who owned airplanes, several homes and dozens of cars, could spend the rest of his life in prison.

Mr. Farkas's attorney, William B. Cummings, declined to comment on the verdict Tuesday but said he was working to keep his client out of jail....

http://online.wsj.com/article/.....62604.html
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hoskins
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Joined: 02 Feb 2009
Posts: 39

Re: Jury Convicts Executive in Mortgage Fraud Case
PostPosted: Thu Apr 21, 2011 2:59 pm Reply with quoteBack to top

It is just one, but there has to be a first. Look for more trials and convictions, especially out of Chicago. When the tide goes out, it strands alot of boats.

The problem is that the SEC/FDIC who are not without blame, are so overwhelmed they have no choice but to cut deals. It is a plea bargain bonanza out there. An Executive crook giving up his boats and vacation homes does not make the average home owner who has just been kicked out of his home when he never had a mortgage to start with feel any better.

I wonder if all the moral high grounders on this forum and in general still feel it is all the dead beat homeowners fault?

Funny thing is a lot of the mightier than thou preachers have now got caught up to by the economy, lost their jobs and can't pay their mortgage. Guess what, they can't believe how bad the banks are and think someone should do something about it.

I know more than one who has gone from Rampant conservative to wooly liberal just as soon as his ARM expired and he lost his job. I do not wish it on anyone, but there is more than a drop of irony.

The truth of the matter is that modifications have not worked for two reasons. One, the banks never really wanted it to work and two, there are very few people who are failing on their mortgage because it is a few hundred $ too much a month. If you lose your job and have no income and you had a $3000 mortgage, reducing it to $2700 really is not going to help.

The problem is that while there was a possible solution, the compounding of illegal behavior by the banks has really made the situation beyond repair.

You have banks foreclosing on a $600,000 mortgage that they will not cut the principal or modify, and they end up spending two years in foreclosure, two years of taxes and legal fees, to sell the house for $250,000 and net $200,000. They could have refinanced that house at $400,000 at treasury plus a point with the money they borrow from the government at 0.5% and everyone would have been better off.

I understand that if they do that, every borrower, distressed or not, would do it, but really who is "winning" apart from Charlie Sheen?

FDIC claims it is going after everybody on the bank side, but they really have their hands full at the moment. They will get some, and in 5 years there will be a slew of insignificant convictions from tiny banks and mortgage shops, meanwhile the really big boys will remain at large and in government.

Goldman Sachs was found guilty of wrong doing by a committee earlier this month - YeeeHaaa - so what are they going to do to them? Fine them a fraction of what they earned?

The 50 AG's chasing the banks, which is very admirable, are negotiating a settlement. So the banks will pay a huge fine in exchange for admitting no wrong doing, but none of that will go to helping the victims. They will say they will impose codes of conduct, but in reality those codes of conduct are being imposed by the fact that nobody is buying pools of toxic mortgages for 100 cnts/$ - If you can't sell this poo poo to Iceland it changes the whole way you do business.

By the way, all this c**p about Americans being in too much debt, overleveraging, etc, etc and all I read is how we are going to raise the federal debt ceiling and does anyone really think we are going to pay China? Chine doesn't!! One rule for them, another for everybody else.

That is my rant for today. Yes I know I played the system, blah, blah, blah. If you find my behavior appalling, then maybe next time you should vote for me...
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MortgageDrummer
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Joined: 19 Nov 2008
Posts: 310

Re: Jury Convicts Executive in Mortgage Fraud Case
PostPosted: Thu Apr 21, 2011 8:06 pm Reply with quoteBack to top

Hank Paulson use to work for Goldman.. Goldman has a contract with Edward Jones to sell as much of their stock as possible.. and on and on and on... and beat goes on.... the biggest problem I see (I was a small broker shop) is the 3 major credit bureaus.. yeah.. that's what I said... as soon as the small broker would pull credit (for real estate purposes) every Tom, richard and Harry (Bank of Countrywide) would call my client, my neighbor, from my church.. from my daughters sports function... and say "I hear you are applying for a mortgage?) All of the sudden they are thrown into a pay opt-arm loan with a nice low payment (never really understanding what it was, just that the payment was lower) 'THAT WAS MY NEIGHBOR YOU A***** AND NOW THEY ARE IN FORCLOSURE, AND THE VALUE OF MY HOUSE JUST WENT TO SH***" OH, AND DID I TELL YOU THEY NEVER EVEN SHOWED UP AT THE CLOSING TABLE TO EXPLAIN WHAT THE HECK THIS CLIENT WAS GETTING INTO.... Title company was not responsible for explaining.. oh, just sign the papers.. cause they wanted more business from the 'SOCIAL ENGINEER FROM ANOTHER STATE THAT COULD GIVE A DA** ABOUT MY NEIGHBOR?.. PUH!!! enough said!!!!

hoskins wrote:
It is just one, but there has to be a first. Look for more trials and convictions, especially out of Chicago. When the tide goes out, it strands alot of boats.

The problem is that the SEC/FDIC who are not without blame, are so overwhelmed they have no choice but to cut deals. It is a plea bargain bonanza out there. An Executive crook giving up his boats and vacation homes does not make the average home owner who has just been kicked out of his home when he never had a mortgage to start with feel any better.

I wonder if all the moral high grounders on this forum and in general still feel it is all the dead beat homeowners fault?

Funny thing is a lot of the mightier than thou preachers have now got caught up to by the economy, lost their jobs and can't pay their mortgage. Guess what, they can't believe how bad the banks are and think someone should do something about it.

I know more than one who has gone from Rampant conservative to wooly liberal just as soon as his ARM expired and he lost his job. I do not wish it on anyone, but there is more than a drop of irony.

The truth of the matter is that modifications have not worked for two reasons. One, the banks never really wanted it to work and two, there are very few people who are failing on their mortgage because it is a few hundred $ too much a month. If you lose your job and have no income and you had a $3000 mortgage, reducing it to $2700 really is not going to help.

The problem is that while there was a possible solution, the compounding of illegal behavior by the banks has really made the situation beyond repair.

You have banks foreclosing on a $600,000 mortgage that they will not cut the principal or modify, and they end up spending two years in foreclosure, two years of taxes and legal fees, to sell the house for $250,000 and net $200,000. They could have refinanced that house at $400,000 at treasury plus a point with the money they borrow from the government at 0.5% and everyone would have been better off.

I understand that if they do that, every borrower, distressed or not, would do it, but really who is "winning" apart from Charlie Sheen?

FDIC claims it is going after everybody on the bank side, but they really have their hands full at the moment. They will get some, and in 5 years there will be a slew of insignificant convictions from tiny banks and mortgage shops, meanwhile the really big boys will remain at large and in government.

Goldman Sachs was found guilty of wrong doing by a committee earlier this month - YeeeHaaa - so what are they going to do to them? Fine them a fraction of what they earned?

The 50 AG's chasing the banks, which is very admirable, are negotiating a settlement. So the banks will pay a huge fine in exchange for admitting no wrong doing, but none of that will go to helping the victims. They will say they will impose codes of conduct, but in reality those codes of conduct are being imposed by the fact that nobody is buying pools of toxic mortgages for 100 cnts/$ - If you can't sell this poo poo to Iceland it changes the whole way you do business.

By the way, all this c**p about Americans being in too much debt, overleveraging, etc, etc and all I read is how we are going to raise the federal debt ceiling and does anyone really think we are going to pay China? Chine doesn't!! One rule for them, another for everybody else.

That is my rant for today. Yes I know I played the system, blah, blah, blah. If you find my behavior appalling, then maybe next time you should vote for me...
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mortgagemess
Nitroglycerin


Joined: 09 Jan 2008
Posts: 561

Re: Jury Convicts Executive in Mortgage Fraud Case
PostPosted: Thu Apr 21, 2011 10:25 pm Reply with quoteBack to top

I appreciate the rant..but again..this crisis came to a head in 2007 and the rollercoaster has been on a downward spiral ever since..to consider the absurd amount of money made by the crooks compared to the "count on one hand" arrests only proves that the FBI, FDIC and all the other goverment agencies are not up to par to handle the ...its actually embarrassing...

hoskins wrote:
It is just one, but there has to be a first. Look for more trials and convictions, especially out of Chicago. When the tide goes out, it strands alot of boats.

The problem is that the SEC/FDIC who are not without blame, are so overwhelmed they have no choice but to cut deals. It is a plea bargain bonanza out there. An Executive crook giving up his boats and vacation homes does not make the average home owner who has just been kicked out of his home when he never had a mortgage to start with feel any better.

I wonder if all the moral high grounders on this forum and in general still feel it is all the dead beat homeowners fault?

Funny thing is a lot of the mightier than thou preachers have now got caught up to by the economy, lost their jobs and can't pay their mortgage. Guess what, they can't believe how bad the banks are and think someone should do something about it.

I know more than one who has gone from Rampant conservative to wooly liberal just as soon as his ARM expired and he lost his job. I do not wish it on anyone, but there is more than a drop of irony.

The truth of the matter is that modifications have not worked for two reasons. One, the banks never really wanted it to work and two, there are very few people who are failing on their mortgage because it is a few hundred $ too much a month. If you lose your job and have no income and you had a $3000 mortgage, reducing it to $2700 really is not going to help.

The problem is that while there was a possible solution, the compounding of illegal behavior by the banks has really made the situation beyond repair.

You have banks foreclosing on a $600,000 mortgage that they will not cut the principal or modify, and they end up spending two years in foreclosure, two years of taxes and legal fees, to sell the house for $250,000 and net $200,000. They could have refinanced that house at $400,000 at treasury plus a point with the money they borrow from the government at 0.5% and everyone would have been better off.

I understand that if they do that, every borrower, distressed or not, would do it, but really who is "winning" apart from Charlie Sheen?

FDIC claims it is going after everybody on the bank side, but they really have their hands full at the moment. They will get some, and in 5 years there will be a slew of insignificant convictions from tiny banks and mortgage shops, meanwhile the really big boys will remain at large and in government.

Goldman Sachs was found guilty of wrong doing by a committee earlier this month - YeeeHaaa - so what are they going to do to them? Fine them a fraction of what they earned?

The 50 AG's chasing the banks, which is very admirable, are negotiating a settlement. So the banks will pay a huge fine in exchange for admitting no wrong doing, but none of that will go to helping the victims. They will say they will impose codes of conduct, but in reality those codes of conduct are being imposed by the fact that nobody is buying pools of toxic mortgages for 100 cnts/$ - If you can't sell this poo poo to Iceland it changes the whole way you do business.

By the way, all this c**p about Americans being in too much debt, overleveraging, etc, etc and all I read is how we are going to raise the federal debt ceiling and does anyone really think we are going to pay China? Chine doesn't!! One rule for them, another for everybody else.

That is my rant for today. Yes I know I played the system, blah, blah, blah. If you find my behavior appalling, then maybe next time you should vote for me...
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hoskins
Flash in the pan


Joined: 02 Feb 2009
Posts: 39

Re: Jury Convicts Executive in Mortgage Fraud Case
PostPosted: Thu Apr 21, 2011 10:56 pm Reply with quoteBack to top

Oh absolutely - I am afraid we are in something is better than nothing mode.

However, watch the Wextrust case coming out of Chicago - going to take everyone down, including an almost senator...
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KBB
Cherry Bomb


Joined: 16 Sep 2008
Posts: 163
Location: Illinois

Re: Jury Convicts Executive in Mortgage Fraud Case
PostPosted: Fri Apr 22, 2011 5:13 am Reply with quoteBack to top

Why is there so much shock to this latest event? We've gotten past the 'who' and the 'what' - which is nothing but greed resulted in the downward spiral because of anyone and everyone - borrowers, originators, UWs, Processors, Closers, Title Companies, Managers, etc. Might as well throw in temps who made copies and filed. Unfortunately, yes, the SEC, lawyers, etc. are backlogged to try and did through this mess. In some ways, yes, it is embarrassing. However, those who knew this would hit, unfortunately could not be proactive and put out a want-ad requesting, "because of greed and a lack of ethics, there will be positions needed to deal with the fall-out...if you have a sense of professionalism, cannot be intimidated and a common sense for logic, please apply." Gee, maybe that should have been the original job posting.

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