Bank exec at fraud trial: 'I was in too deep'

AP News
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Posted: Apr 07, 2011 3:35 PM
Bank exec at fraud trial: 'I was in too deep'

A bank executive says she enabled a seven-year fraud that ultimately led to the collapse of her company because she was in too deep and kept hoping her cheating client could turn the tide.

Cathie Kissick, a senior vice president at now-defunct Colonial Bank in Alabama, testified Thursday at the trial of Lee Farkas, the former chairman of the Taylor Bean & Whitaker mortgage company. Prosecutors say Farkas led a $2 billion fraud scheme, one of the biggest criminal cases to arise from the nation's financial crisis.

Kissick told jurors she first learned in 2002 that Taylor Bean had overdrawn its account by as much as $10 million. But she covered it up rather than reporting it, and the debt grew to nearly $600 million by 2008.