Mortgage exec pleads to billion-dollar conspiracy

AP News
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Posted: Mar 14, 2011 5:35 PM
Mortgage exec pleads to billion-dollar conspiracy

The former president of what had been one of the nation's largest mortgage providers has pleaded guilty to a billion-dollar fraud conspiracy that toppled not only his company but also an Alabama bank.

Forty-five-year-old Raymond Bowman of Atlanta is the third executive _ and also the highest ranking _ to plead guilty in recent weeks to the scheme that engulfed Florida-based Taylor Bean & Whitaker and Colonial Bank. Colonial's 2009 collapse was the sixth largest in U.S. history.

In his guilty plea Monday in federal court in Alexandria, Va., Bowman acknowledged that he and others allowed Taylor Bean to sell hundreds of millions of dollars in worthless mortgages to Colonial to try and keep Taylor Bean afloat.

Taylor Bean's chairman, Lee Farkas, is expected to go on trial next month.