Finally, a Lender Admits to Fraud in U.S. Financial Meltdown

A Justice Department Press Release reports that Desiree Brown, the former treasurer of a private mortgage lending company, Taylor, Bean & Whitaker (TBW), pleaded guilty to conspiring to commit bank, wire and securities fraud for her role in a more than $1.9 billion fraud scheme that contributed to the failures of Colonial Bank and TBW. Brown and her co-conspirators caused Colonial Bank to pay TBW $400 Million for assets that were worthless to Colonial Bank. TBW used the money it defrauded from Colonial to pay for TBW’s expenses related to operations and servicing payments owed to third-party purchasers of loans and/or mortgage-backed securities.

Carlos L. McDade, Esq.