Taylor, Bean & Whitaker Mortgage Corp
Lee Farkas, 30 years in prison for $3 billion fraud involving fake mortgage assets.
Jacksonville, Florida Bankruptcy
Taylor, Bean & Whitaker Mortgage Corp. filed for Chapter 11 bankruptcy on August 24, 2009, in the Middle District of Florida, Jacksonville Division and is assigned to The Honorable Jerry A. Funk under case number 3:09-bk-7047.
Attorneys for the Debtor are Russell Blain, Edward Peterson, and Amy Harris of the law firm of Stichter, Riedel, Blain & Prosser, PA. Their office is located at 110 East Madison Street, Suite 200, Tampa, Florida 33602 and telephone number is 813-229-0144.
The case manager responsible for this case is Cathy Perkins. Her telephone number is 904-301-6522.
Proofs of Claim are not docketed or maintained by the Clerk’s Office. BMC Group currently handles the processing of all claims in this case. Proofs of Claim are required to be filed in paper and forwarded to:
c/o BMC Group
P. O. Box 302
Chanhassen, MN 55317-3020.
Electronic case filing is mandatory in the Jacksonville Division. If you are an Florida attorney who is already registered to file electronically in another bankruptcy district and you wish to obtain a password in order to electronically file in the Middle District of Florida, you must complete an on-line Out of District ECF Registration Form which can be found by clicking the Registration link located on the home page of our court’s website.
If you wish to view the docket of this case, the claims register, or obtain a proof of claim form, go to BMC Group’s website.
United States Trustee
Elena L. Escamilla, Trial Attorney
Office of the United States Trustee
US Department of Justice
Florida Bar No. 898414
135 W Central Blvd, Suite 620
Orlando, FL 32801
Phone: (407) 648-6301 (Ext 127)
Fax : (401) 648-6323
Email : Elena.L.Escamilla@usdoj.gov
The following informational excerpt is taken from: http://en.wikipedia.org/wiki/Taylor,_Bean_%26_Whitaker#cite_ref-TB.26W_Shuts_Doors_1-0 It has been edited to update information and provide more information.
Taylor, Bean & Whitaker was a top 10 wholesale mortgage lending firm. Taylor, Bean & Whitaker closed $35 billion in residential mortgage loans in 2007. It employed about 2,000 workers and was the fifth largest issuer of GNMA securities. On August 3, 2009, FBI Agents raided the company’s headquarters in Ocala, Florida in connection with an investigation related to the company’s acquisition of a majority stake in Colonial BancGroup. Taylor Bean & Whitaker had signed a deal on March 31, 2009 to become the majority owner of Colonial BancGroup in a $300 million equity stake. The next day, the Federal Housing Administration suspended the company from issuing FHA mortgage loans and Ginnie Mae mortgage backed securities.On August 5, 2009, Taylor Bean & Whitaker ceased business operations and terminated all employees at its headquarters.
On April 19, 2011, a federal jury in Alexandria, Virginia convicted Farkas, the majority owner of the company, of 14 counts of fraud. According to the government case, the fraud began in 2002 when Taylor overdrew its account with Colonial BancGroup by several million dollars. Taylor Bean then promised to cover the amount by the end of the day in a process known as sweeping. When the overdrafts grew to over $100 million midlevel Taylor Bean executives sold Colonial BancGroup $1 billion in mortgages that it did not own. Taylor Bean also operated a subsidiary, Ocala Funding, which sold $1.5 billion of worthless commercial paper to several banks including Deutsche Bank and BNP Paribas. 
During his sentencing hearing on June 30, 2011, Farkas read a statement saying that he “strived to be a good person.” However, Federal District Judge Leonie Brinkema replied that she did not observe any genuine remorse and sentenced Farkas to 30 years in federal prison.Farkas is currently serving his sentence in a medium security facility at the Butner Federal Correctional Complex in Butner, North Carolina, and is scheduled for release in 2037.
- “Top GNMA Issuers”. US Banker (Source Media, Inc). 2008-07-01. Retrieved 2009-05-07.
- “Taylor, Bean & Whitaker shuts its doors”. Susan Latham Carr (Ocala.com). 2009-08-05. Retrieved 2009-08-05.
- “FHA SUSPENDS TAYLOR, BEAN & WHITAKER MORTGAGE CORP. AND PROPOSES TO SANCTION TWO TOP OFFICIALS”. Brian Sullivan (U.S. Housing and Urban Development). 2009-08-04. Retrieved 2009-08-05.
- Protess, Ben (2011-06-30). “Mortgage Executive Receives 30-Year Sentence”. The New York Times.