Raymond Bowman, Former President of Taylor, Bean & Whitaker Pleads Guilty to Fraud Scheme

“TBW had caused Colonial Bank and the Federal Home Loan Mortgage Corporation (Freddie Mac) to falsely believe that they each had an undivided ownership interest in thousands of the same loans worth hundreds of millions of dollars.”

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Got that? Multiple pledged notes in thousands of loans. Trust me, this was not exclusive to just TBW. It has been documented in other institutions as well.

So when you get your foreclosure notice’s from an entity that you never heard of, or multiple plaintiff’s, just be a good little deadbeat and pay them both.

Department of Justice

Office of Public Affairs
FOR IMMEDIATE RELEASE
Monday, March 14, 2011
Former President of TBW Pleads Guilty to Fraud Scheme

WASHINGTON – Raymond Bowman, the former president of Taylor, Bean & Whitaker (TBW), pleaded guilty today to conspiring to commit bank, wire and securities fraud, and lying to federal agents about his role in a fraud scheme that contributed to the failures of TBW and Colonial Bank.

The guilty plea was announced today by Assistant Attorney General Lanny A. Breuer of the Criminal Division; U.S. Attorney Neil H. MacBride for the Eastern District of Virginia; Special Inspector General Neil Barofsky for the Troubled Asset Relief Program (SIGTARP); Assistant Director in Charge James W. McJunkin of the FBI’s Washington Field Office; Michael P. Stephens, Inspector General of the Department of Housing and Urban Development (HUD OIG); Jon T. Rymer, Inspector General of the Federal Deposit Insurance Corporation (FDIC OIG); Steve A. Linick, Inspector General of the Federal Housing Finance Agency (FHFA OIG); and Victor F. O. Song, Chief of the Internal Revenue Service (IRS) Criminal Investigation.

Bowman, 45, of Atlanta, pleaded guilty before U.S. District Judge Leonie M. Brinkema in the Eastern District of Virginia.   Bowman faces a maximum penalty of five years in prison on the conspiracy charge and a maximum penalty of five years in prison on the false statements charge when he is sentenced on June 10, 2011.

According to court documents, Bowman admitted that from 2003 through August 2009, he and his co-conspirators, including former TBW chairman Lee Farkas, engaged in a scheme to defraud various entities and individuals, including Colonial Bank, a federally-insured bank; Colonial BancGroup Inc.; and the investing public. Bowman admitted that he knowingly and intentionally participated in a fraud scheme that caused Colonial Bank and Colonial BancGroup to purchase tens of millions of dollars of worthless assets, caused Colonial BancGroup to report false information in its financial statements, and artificially inflated the value of TBW’s mortgage servicing rights.

Court documents state that in early 2002, Bowman learned that TBW began running overdrafts in its master bank account at Colonial Bank because of TBW’s inability to meet its operating expenses, which included payroll, servicing payments owed to third-party purchasers of loans and/or mortgage-backed securities and other obligations.  In or about the fall of 2003, Bowman, along with Farkas and other co-conspirators, engaged in a series of fraudulent actions to cover up the overdrafts, first by sweeping overnight money from one TBW account with excess funds into another, and later through the fictitious “sales” of mortgage loans to Colonial Bank, a fraud scheme the conspirators dubbed “Plan B.”  The conspirators accomplished this by sending mortgage data to Colonial Bank for loans that did not exist or that TBW had already committed or sold to other third-party investors. According to the statement of facts, Bowman believed that Plan B data included data for loans that did not exist and knew that without Plan B, TBW would likely fail and go out of business.

TBW used its mortgage servicing rights (MSR) to collateralize a working capital line of credit at Colonial Bank, and it retained third-party companies to conduct periodic MSR valuations. According to court documents, Bowman admitted that he, at Farkas’s request, directed co-conspirators to manipulate TBW’s borrowing base by billions of dollars to artificially inflate the MSR valuations and to avoid a margin call.

In 2005, TBW established a wholly-owned special purpose entity called Ocala Funding LLC, as a financing vehicle to provide it with additional funding for mortgage loans. The facility obtained funds for mortgage lending from the sale of asset-backed commercial paper to financial institutions. In his statement of facts, Bowman admitted that he learned from Farkas and other co-conspirators at TBW that within a year of its creation, Ocala Funding had a significant collateral deficit. As Bowman acknowledged, the government could prove that by August 2009, that deficit had grown to approximately $1.5 billion and that TBW had caused Colonial Bank and the Federal Home Loan Mortgage Corporation (Freddie Mac) to falsely believe that they each had an undivided ownership interest in thousands of the same loans worth hundreds of millions of dollars.

On Aug. 3, 2009, Bowman was interviewed by agents from the FBI and the Office of the SIGTARP. Today, Bowman admitted that he falsely stated to the agents that he was not aware of Plan B loans, and that he was not aware of any fraudulent activities between Colonial Bank and TBW.

In August 2009, the Alabama State Banking Department, Colonial Bank’s regulator, seized the bank and appointed the FDIC as receiver.   Colonial BancGroup also filed for bankruptcy in August 2009.

In June 2010, Farkas was arrested and charged in a 16-count indictment for his role in the fraud scheme.   His trial is scheduled to begin in April 2011.   An indictment is merely a charge and a defendant is presumed innocent until proven guilty.   Desiree Brown, the former treasurer of TBW, pleaded guilty on Feb. 24, 2011, and Catherine Kissick, a former senior vice president of Colonial Bank and head of its Mortgage Warehouse Lending Division, pleaded guilty on March 2, 2011, for their roles in the fraud scheme.

The case is being prosecuted by Deputy Chief Patrick Stokes and Trial Attorney Robert Zink of the Criminal Division’s Fraud Section and Assistant U.S. Attorneys Charles Connolly and Paul Nathanson of the Eastern District of Virginia.   This case was investigated by SIGTARP, FBI’s Washington Field Office, FDIC OIG, HUD OIG, FHFA OIG and the IRS Criminal Investigation.   The Financial Crimes Enforcement Network (FinCEN) of the Department of the Treasury also provided support in the investigation.

This prosecution was brought in coordination with President Barack Obama’s Financial Fraud Enforcement Task Force.  President Obama established the interagency Financial Fraud Enforcement Task Force to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes.  The task force includes representatives from a broad range of federal agencies, regulatory authorities, inspectors general and state and local law enforcement who, working together, bring to bear a powerful array of criminal and civil enforcement resources.  The task force is working to improve efforts across the federal executive branch, and with state and local partners, to investigate and prosecute significant financial crimes, ensure just and effective punishment for those who perpetrate financial crimes, combat discrimination in the lending and financial markets, and recover proceeds for victims of financial crimes.

SOURCE: Department of Justice

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4closureFraud.org

Comments
24 Responses to “Raymond Bowman, Former President of Taylor, Bean & Whitaker Pleads Guilty to Fraud Scheme”
  1. l vent says:

    I read at a news report that FINcen is U.N. BLACK OPS.

  2. Pamela says:

    Tru dat,I tell you I really tried to explain this to both police officers especially about the pension funds buying into MBS backed securities and these two had absolutley no clue what i was talking about.I even tried to bring them up to speed on clear title my comparable based on most police know a bit about car titles so I thought okay let me see where this goes they both said they could see the point on the car titles but not house titles.I was like are you for real you can see why a car title should always be perfected but you can’t see this samething in regards to a house title .A house one of your supposed most prized possesions and you can’t see it?That was when I brought that conversation to a close cause it was going down the road fast.These are the people were going to get help from,I think not they seem unable to help themselves.How in the hell are they going to help us? Puhleesee.

    • l vent says:

      They might want to find out the truth when they are retiring and their pension money is gone because the people can not afford to pay back the money the ongoing criminal enterprise stole from them in their Ponzi Scheme. Or maybe they will lose their jobs and when they go out looking for another one they might be unemployed for a mighty long while .Maybe this will not be crazy talk then. Or maybe they will bust up their unions and steal their rights to living wages,good health care and a descent pension. Then they will want to know the truth when they can no longer afford to pay their mortgage and their other bills. No one is safe.

  3. Pamela says:

    I vent I so know what your talking about it’s like your dammned if you do and your dammned if you don’t.I mean this is the directive and the criteria your given you try to follow it to not only cover you but everybody else involved and not only are you met by hard resistance and impossibility but derision and flagrent disregard.The police officer I talked to said the Prosecuting Att. would throw my complaint in the garbage.I said well don’t you think we should give the prosecutor the chance to make that decision instead of you making it for them and that’ when he went into the whole wacko thing.So I’m done with the cops,I suppose when some suit walks up on my property and gets the dogs let out on them then and only then will I have thier attention.Could have been solved by just taking a report.I didn’t ask them to gas someone or lob a hand gernade at somoneor better yet kill someone.Just a simple report.

    • l vent says:

      Unfortunately Pamela the cops are working for them too. When push comes to shove they serve and protect “them”. Little do they know and I think some probably do know, we ALL got screwed by the casino Ponzi Scheme business model of fraud. The cops might not realize that no one is safe and their careers and their pensions are in jeopardy also because of all of rampant fraud and corruption.My State is teetering on Bankrupcy. We were told by our mayor that we will all have to pay a 155 billion dollar property tax increase by 2015 to cover for all of the missing policemans and firemans pension money. That is not only unsustainable in this horrible economy buy there was not a word about where all of the money went. I heard a news report that there was some police union busting going on up in Michigan last week. When the State Ag’s office told me to consult with a private attorney before filing a police report that was pretty telling. I took it like this: Are we really going to ask the Government to investigate itself? Again, what a joke. The whole story does sound hard to believe and they intended to make us sound nutty. That was intentional. Once you have gotten to where we are now you know that it is all true but convincing others can be a bit of a challenge. The cops, the judges, the attorney even the State’s Attorneys might be where we are today and they might be very soon joining our plight. When the people can’t afford to pay these crazy hyper-inflated taxes anymore then what are they going to do? The public sector jobs are going to take the next hit, that is obvious. Just look at what is going on up in Wisconsin. There were 20,000 jobs lost last month and most of those were in the public sector. The middle class is taking the hit for all of the fraud and corruption. It is not crazy talk when all of it is happening to you. Then you get mad, then you find out the truth. All of us were set up and robbed and it was intentional.

  4. l vent says:

    Geithner testified today that Fannie/Freddie need to be wound down. He said that mortgage lending should be left to the private sector. Hmmmmmmmmmmmm… Sounds like an evasive way of admitting that the PONZI SCHEME CASINO BUSINESS MODEL OF FRAUD IS CRUMBLING.The GSE Fannie/Freddie apparently “backs” 90% of the shit bag full of mortgage loan FRAUDULENT MBS’s in this country. It looks like the jig is up. The GSE’s didn’t do their due dilligence and check to see the loans they were “backing” and selling to investors were the gold standard? Bullshit, they were complicate. They knew they were GUARANTYING shit loans with good loans and they knew we would all go down. It was a set up for us to fail. To bad we the people can’t sue the federal government huh? Maybe we should speculate for a while on how to SCREW them. Supposedly there is a part of Fannie/Freddie that is privately owned. Maybe we should sue that part. Their investors were not the only ones they screwed. They screwed us to when they didn’t tell us, the legitamate borrowers, that qualified for the loan that LO AND BEHOLD we WOULD BE GETTING PACKAGED UP AND SOLD WITH UNCREDITWORTHY BORROWERS WHO CLEARLY DID NOT QUALIFY FOR A MORTGAGE LOAN AND THEY KNEW THEY WERE GOING TO FAIL AND THEN WE WOULD ALSO FAIL. Now they are hiding behind MERS and the PRETENDER LENDERS. Sorry, but they gave their blessings over the shit FRAUDULENT MBS’S AND IT WAS INTENTIONAL.

  5. l vent says:

    Bloomberg is having a special report tomorrow afternoon entitled ‘Keeping up with the Joneses.’More and more homeowners are apparently strategically defaulting on the mortgage. Way to go America. Anybody know what the true rate of default is in this country right now? I think that is of vast importance to all of us in fraudclosure. I was told by an attorney a few months ago that the more defaults there are that will bring the default rate to 0 and that means the banks will no longer be able to FRAUDCLOSE on anybody. THE MORE PEOPLE THAT ARE DEFAULTING AT A CERTAIN POINT THAT WILL MEAN NO ONE IS DEFAULTING. KEEP UP THE GOOD WORK AMERICA. WE THE PEOPLE GOT ROBBED BY THE PERPS, WALL STREET/BANKSTER CASINO CABAL WHO ARE BACKED UP BY THE HIDDEN FOREIGNERS WHO ARE WELL HIDDEN BEHIND THE SCENES OF FRAUDCLOSUREGATE, WE GOT SCREWED AND IT WAS INTENTIONAL. PAY BACK TIME. THE NEXT THING ON OUR AGENDA; NATIONWIDE TAX REVOLT. WE THE PEOPLE MUST STAND UNITED INDIVISIBLE UNTIL THERE IS LIBERTY AND JUSTICE FOR ALL. HOW DARE THEY THINK THEY COULD ROB US BLIND AND THINK THEY WOULD GET AWAY WITH IT!!!! THIS IS AMERICA NOT NAZI GERMANY.

  6. Pamela says:

    Oh BTW beenthere done that on the whole call your local law enforcement agency thing.I’m here to tell toyou think twice on that little ditty.I called not one but two different law enforcement ag’ to be told by both officers that they would not take a report as it was a civil matter not a criminal matter.I asked the one officer :don’t you know whats going on with your pension plan and don’t you think of that as fraud.He told me no.They think your some kind of a nut case.

    • l vent says:

      @Pamela, This was regarding my commercial property. The FBI asked me if I was talking about the Origination Fraud and I said no one is coming forward with a note to prove they are due the money that is in recievership. He told me to call a make a police report and they would in turn give that to the State’s Attorneys office and they would take my case. I called my AG’s office and asked them should I do that and she said maybe I should consult a private attorney before filing a police report. What a joke.

  7. Jason Werner says:

    Personally being sued by three entities at the same time more than a year ago for nearly two straight years, with counsel arguing standing, I still do not understand the CEOs scheme. I just don’t get it. Look, I get the whole point of him manipulating and stuff like that I guess, but I just don’t understand how he came up with the scheme, how he implemented the scheme, and how he thought he could get away with it (their bibes only go so far).

  8. TREMENDOUS VIEW says:

    FIN CEN IS FUNNY:) HAVE FAITH FEDS DOING A SNEAKY JOB:)

  9. MARIO KENNY says:

    But the loans got sold, with no signed original borrower docs and many borrowers lost the home as a result, but he goes to jail, and this makes everyone feel happy that the judicial system and the government are doing a super fine job, meanwhile the borrowers hires no lawyer, no expert and does the pro se loser thing, then blames the stupid judge for not delivering justice, LOL.

    I was never Pro Se I knew from the start that it would never work, in the 4 yrs I fought I had as many hearings and every time I had a lawyer do this for me, Brian Korte won my case”without” so they could come back, but I think they never will, they never came to the 4 hearings in the first place, nor did they do the depositions required or answer the discovery requests, so I think they would sell the debt to a third party, in which case I will ask Brian to deal with them as a third party debt collector, not before I answer and get those counterclaims in first though.

    My first lawyer did squat, she sat on my rights, never motioned the court to answer my complaint, which I did not do at the inception, do not sit on your rights, a homeowner must find a lawyer who does not have fear of the judicial system, the lawyer who has been sanctioned for many thousands is better, than the newbies, who have no record, you have to get a lawyer who have been plundered by the system, one who has money to pay fines from the courts, one who has been “disciplined” these are the good ones. An aggressive lawyer firm is essentially the best lawyer to find. I was lucky to have found the perfect lawyer in the end, my case went south in the hands of the lawyer who did nothing for me, doing nothing is the worst thing you can do; time is not the homeowner’s friend.

    The bankster waits you out, they wait out the statute of limitations, and you lose while you sit and waste time, on the onset you have to get out of the box fighting with a proper lawyer, I recall when I met Brian, I began to work for him in his office and on line, he is a very kind man, hell on wheels in court and has no fear of being fined by the court for the many things the judges use to try to discourage the lawyer from fighting the case and this works, for sure, I have seen this, one of the lawyers who I hired was a wimp, all smoke but no fire. I was lucky to find brian, he first represented Joe Lence[spell] so I knew he has some crass and then he also had the people to do the work in his office.
    There is a lawyer in his office her name is Kim, the workers call he bulldog, she works hard and she is very good in court, she controls the court when the case calls, I was so surprised with her the first time she went to court for me, I was blown away by her performance.
    If you sit on your rights I suggest you go live in the park and invite other people to pitch tents with you, this may cause the government to help out, my case is not over, and the future is yet to come, my lawyer said he is sure they are coming back. I do not work for the lawyer anymore, I moved on, I have an endeavor to get my life back, but I love the lawyer stuff, I like to do research and study the law, just for a hobby. I do have to quiet the noisy title, and this is a huge fight, I know the lawyer is litigating for the fees, and I hope he milks them of every penny and much more, just to avenge the many who have lost. I am sad really for so many of my dear friend and family whom I see suffer daily. No homeowner in Florida should ever go to court without a lawyer is just a foolish thing to do the judges have no mercy and there is no justice, does not matter how much fraud you have your case if you are out of compliance you will lose your case. I was out of compliance until I met this lawyer, if your lawyer is doing nothing for you get another lawyer this is your house and to defend it you must fight if you do not fight you would lose, the keyword is compliance you must remain compliant with the courts.
    You must hire an expert to do an affidavit for you must do a study on your note, I discovered they are all fake there is a wonderful lady in Fort Lauderdale who does this kind of work I did not hire her, because my case got dismissed before I could hire her, moreover it’s the luck of the draw, there is no real guarantees, but you must fight, this may get bad, if it gets bad, I think this is a good thing because many more people would win, history has shown this that it is not until the potboilers over that anybody does anything before that it’s just guessing and hearsay.
    Japan will never have another nuclear site on their soil ever again I am sure, it took a huge catastrophe to teach them this hard lesson, in like manner, and similarly it has always been my belief that the more homeless people we have the more people living boxes, the more people suffer at the hands of the banks, in the end we will all do better, it is unfortunate that this is how it has to be for the government the judges and the people to realize that they’re doing wrong, that you should not be taking families out of their homes it is morally wrong it is financially wrong and it is wrong. I always knew that if I fought alone I would lose I needed many other people to fight this is why I always try to find the homeowners why can work with to help, to give me support people I could support. So this is my example it is only in a catastrophe that we see real change. Anyways I am able to write forever so I will bid you good night and I wish you good luck. The Bank of Japan just gave Wall Street 80 billion dollars, a bailout, FYI

    • TREMENDOUS VIEW says:

      The pot is boiling over………in Jap!

    • TREMENDOUS VIEW says:

      No tents lol no Kim ty:)))

    • l vent says:

      @Mario Kenny, you are right about everything. I don’t think there is a foreclosure defense lawyer around that is not afraid of the corrupt judges so they just decided to join them because they can’t beat them. I think maybe it is time to go a different route, The appelate courts and if we can get no justice there the Supreme Court. I There is actual proof of a crime here. The chancery division is a sham and a fraud. It is completely bought up by the foreigners. Those judges and attorneys are a bunch of complete sell outs they are treasonists that are aiding and abetting the same criminals who set us all up to fail and now they are helping the criminals steal the homes from their own people right from under us.They are serving up our homes to the foreigners who are hiding behind the scenes, on a silver platter. It is a disgrace.

  10. TREMENDOUS VIEW says:

    lol u funni

  11. l vent says:

    I called the FBI white collar crimes division about my mortgage fraud and asked them if I should call FINcen about it, the agent asked me in an utterly shocked tone of voice, WHO? WHO IS FINcen? Do they have a website, is it a dot. gov? Could I give them that info so they could check it out. The agent told me to go ahead and call FINcen and see what they tell me because they never even heard of FINcen. I called FINcen about the mortgage fraud. They told me to call the FBI, the FBI then told me to call the police. I kid you not. I think this country has gone completely insane.

  12. MARIO KENNY says:

    Yep another small fry bites the dust, a Madoff whoever, nothing to see here move along now, JP, Citi and the other big fish are all free to continue the scam forever, the unknown rich big money are in glee and still fooling the stupid people who believe that they are not doing anything wrong.

  13. jz says:

    IT TOOK 8 F***ING YEARS YOU DIPSH””TS

  14. A FAT LOLA says:

    wtg! thanks 4 including the 2 female scabs!

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