Guilty Plea in TARP Scam

ALEXANDRIA, Va. (CN) – The SEC today charged Desiree Brown, formerly the treasurer of the largest nondepository lender in the country, with aiding and abetting a $1.5 billion securities fraud that tried to scam the U.S. Treasury’s Troubled Asset Relief Program. Brown, former treasurer of Taylor, Bean & Whitaker, pleaded guilty today to federal criminal charges, the SEC said.

     The SEC claims that Brown, as treasurer of Taylor, Bean & Whitaker, enabled the sale of more than $1.5 billion in fictitious and impaired mortgage loans and securities from Taylor, Bean & Whitaker to Colonial Bank, and caused them to be falsely reported to investors as high-quality, liquid assets.
     The SEC charged Taylor, Bean & Whitaker’s former majority owner and Chairman Lee Farkas with similar charges in June 2010, when Farkas was arrested.

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