Ex-mortgage firm chairman gets 30 years in prison

Reuters News
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Posted: Jun 30, 2011 12:13 PM
Ex-mortgage firm chairman gets 30 years in prison

ALEXANDRIA, Virginia (Reuters) - Taylor, Bean and Whitaker Mortgage Corp's former chairman, convicted of masterminding a $2.9 billion fraud scheme before the company collapsed, was sentenced on Thursday to 30 years in prison.

Lee Farkas, 58, was convicted in April on 14 counts of conspiracy, bank, securities and wire fraud that brought down his firm in 2009 as well as contributed to the implosion of one of the top U.S. banks, Colonial Bank.

He was the last to be sentenced in the fraud case, which represents a victory for the Obama administration because it has been criticized for prosecuting few senior executives over the housing market collapse and subsequent financial crisis.

(Reporting by Jeremy Pelofsky, editing by Lisa Von Ahn)