It's hard to feel too sorry for former Taylor Bean & Whitaker Mortgage Corp. Chairman Lee Farkas, if allegations that he skimmed more than $50 million from the company are true. A Wall Street Journal article details the alleged theft and hiding of assets in the three years prior to its collapse.
The Florida-based mortgage lender laid off 2,000 employees last August and filed for Chapter 11 bankruptcy protection just three weeks later, according to an article in the Ocala Star-Banner.
But while $50 million may be just a drop in the bucket of Taylor Bean's tens of billions of dollars under management, it shows just how corrupt many mortgage lenders and/or their executives became during the real estate bubble.
Lee Farkas turned the once-tiny mortgage company into the country's largest non-bank mortgage lender. According to the bankruptcy filing, he "withdrew substantial sums of money from [Taylor Bean] for his own personal benefit or for the benefit of business ventures that he owns or controls."
Former receptionist-turned-treasurer Desiree Brown allegedly received at least $1.5 million in bonuses and transfers for her alleged role in the fraud. Ex-Taylor Bean CFO Delton De'Armas also is accused of playing a role in the graft, according to a Taylor Bean court filing:
"[There is] substantial evidence that Mr. Farkas and Ms. Brown committed numerous dishonest acts...and that Mr. De'Armas, for similar financial motives, assisted them in concealing their conduct."
In addition, Lee Farkas allegedly asked Taylor Bean employees to shift more than $1 billion held in accounts for mortgage finance company Freddie Mac for use in his other businesses.
Taylor Bean is asking the court to relieve it from debts associated with the alleged misconduct by Lee Farkas.
You don't have to be a large corporation to seek bankruptcy protection; just call a bankruptcy attorney in Atlanta to review your options.
Related Resources:
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Chapter 11 Bankruptcy (FindLaw's KnowledgeBase)
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Taylor Bean Files for Bankruptcy (Wall Street Journal)
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Search Atlanta Bankruptcy Lawyers (FindLaw)
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