CEO sentenced to three years for historic mortgage fraud scheme

TRD New York /
Jun.June 22, 2011 02:01 PM

Paul Allen, CEO of Florida-based former mortgage lender Taylor Bean & Whitaker, once one of America’s largest lending firms, has been sentenced to over three years in prison after pleading guilty to one count of making false statements and one count of conspiring to commit bank and wire fraud, the Huffington Post reported. His actions, he admitted, were part of a $3 billion corporate fraud scheme, among the most significant in the history of the United States. Federal prosecutors had sought a six-year jail term.

“I messed up. I messed up big,” Allen told U.S. District Judge Leonie. “There was no excuse for my behavior.”

Taylor Bean went bust in 2009 when the criminal investigation became public. Its collapse resulted in the loss of 2,000 jobs and contributed to the collapse of Colonial Bank, which had bought hundreds of millions of dollars in Taylor Bean mortgages, already sold to other investors.

Allen’s lawyer urged for leniency, saying that Chairman Lee Farkas often excluded Allen from knowledge of operations. Farkas masterminded the scheme, he said.

“Mr. Allen was not treated as a CEO. He did not function as a CEO,” said defense lawyer Stephen Graeff. “Sentence Mr. Allen, the man, not Mr. Allen, the title.” [Huffington Post]


Related Articles

arrow_forward_ios
(Image by Wolfgang & Hite via Dezeen)

Hudson Yards megadevelopment inspires a new line of sex toys

Hudson Yards megadevelopment inspires a new line of sex toys
Cammeby's International Group founder Rubin Schron and, from top: 194-05 67th Avenue, 189-15 73rd Avenue and 64-05 186th Lane (Credit: Google Maps)

Ruby Schron lands $500M refi for sprawling Queens apartment portfolio

Ruby Schron lands $500M refi for sprawling Queens apartment portfolio
Wendy Silverstein (Credit: Getty Images)

Wendy Silverstein, co-head of WeWork’s real-estate fund, is out

Wendy Silverstein, co-head of WeWork’s real-estate fund, is out
Bruce Flatt, Arjun Menda and Chennai (Brookfield, RMZ Corp, iStock)

Brookfield’s $2B India office buy would be biggest in country’s history

Brookfield’s $2B India office buy would be biggest in country’s history
Joe Biden (Credit: Leigh Vogel/Getty Images)

“Your rent will be increased” if Biden wins, landlord allegedly tells tenants

“Your rent will be increased” if Biden wins, landlord allegedly tells tenants
An aerial view of a pop-up drive-in theater built in the parking lot at the Broadway Commons in Hicksville, New York (Getty)

Covid pummeled shopping centers, but their parking lots are thriving

Covid pummeled shopping centers, but their parking lots are thriving
French buyers are gobbling up prime London real estate

French buyers are gobbling up prime London real estate

French buyers are gobbling up prime London real estate
20 West 33rd Street (20West33rd)

Furnishing firm picks up 4 condos at 60 Guilders, Carlyle’s Midtown South project

Furnishing firm picks up 4 condos at 60 Guilders, Carlyle’s Midtown South project
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...