The CEO of what had been one of the nation's largest privately held mortgage lenders was sentenced Tuesday to more than three years in prison for his role in a $3 billion scheme that officials called one of the biggest corporate frauds in U.S. history, HuffPo Reports..
"I messed up. I messed up big," Allen told U.S. District Judge Leonie Brinkema before he was sentenced, apologizing to his family and "the entire financial community. "There was no excuse for my behavior."
Allen was CEO at Ocala, Fla.-based Taylor Bean & Whitaker, which collapsed in 2009 after the criminal investigation became public, resulting in its 2,000 employees losing their jobs. The fraud also contributed to the collapse of Alabama-based Colonial Bank – the sixth largest bank failure in U.S. history – after Colonial bought hundreds of millions of dollars in Taylor Bean mortgages that had already been sold to other investors.
Two other banks – Deutsche Bank and BNP Paribas – lost nearly $2 billion after buying corporate paper from Taylor Bean that was not properly backed with collateral, authorities said….
Wait…wait. There’s more good stuff at:
http://www.huffingtonpost.com/2011/06/22/mortgage-fraud-ceo-prison-paul-allen_n_881946.html
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