Lee B Farkas – Received a 30 Year Prison Sentence – But “I did nothing wrong!”

Convicted of orchestrating a $3 billion fraud as chairman of one of America’s largest private mortgage companies, Taylor Bean & Whitaker, Lee B Frakas was sentenced to 30 years in prison.  Prosecutors sought a life sentence Farkas calling the case against him one of the most significant arising from the nation’s financial meltdown.
A jury convicted Farkas of all 14 counts leveled against him, including securities fraud and conspiracy. Farkas testified that he had done nothing wrong.  Nothing wrong?  Surely by the time he found himself facing a jury and judge he might have concluded that something was wrong – and the common denominator was him!
According to news reports the Farkas fraud began in 2002 and took multiple forms, according to prosecutors.   Taylor Bean overdrew its main account with Colonial Bank by several million dollars and eventually double- and triple-pledged mortgages it held to a variety of investors. Prosecutors also alleged that Taylor Bean sold hundreds of million in worthless mortgages to Colonial.

Prosecutors say Farkas led a lavish lifestyle that included multiple houses — including one on Key West — several dozen classic cars, a private jet and a seaplane.

Farkas, of Ocala, Fla., is the last of seven employees and executives from Taylor Bean and from Colonial to be sentenced. Taylor Bean collapsed in 2009 when the scheme unraveled, putting 2,000 employees out of work.

When the house of cards begins to fall – all I can say is get out of the way!  Reports states that Colonial and two other major banks — Deutsche Bank and BNP Paribas — were collectively cheated out of nearly $3 billion during a scheme that spanned more than seven years.

According to a Time Magazine report: Farkas and his co-defendants 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). Neither Taylor Bean nor Colonial ever received any TARP money, even though TARP at one point gave conditional approval to a payment of roughly $550 million, investigators say.

U.S. District Judge Leonie Brinkema told Farkas she detected no remorse as she sentenced him to 30 years — twice the 15-year sentence requested by his attorneys.
How is it that someone who has some obvious intelligence can be so caught up in the illusion of their actions that they fail to accept reality and comprehend the gravity of their choices?
If you have insight into the mind of Farkas or were caught up in the inner operations of what brought down the private mortgage company…feel free to comment!

One Response to Lee B Farkas – Received a 30 Year Prison Sentence – But “I did nothing wrong!”

  1. Don Carter says:

    I met Lee back when TB& W was booming He was an impressive guy however having been in that business when a person get to the leve he attained it takes an iron will and much dicipline to “play by the rules” he just got “caught up in it ” sad

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