Wednesday, February 23, 2011

Some mortgage executives face criminal charges

Image ID 1020195 by userTaylor, Bean & Whitaker’s former Treasurer will enter a plea agreement for federal criminal charges tomorrow (Feb 24, 2011). The mortgage firm imploded in Fall 2009 and investigators are still sifting through the ashes. So far, they’ve discovered a trail of fraud amounting to as much as $2 billion.

TBW’s Treasurer, Desiree Brown, is widely believed to be cooperating with prosecutors in their attempts to prosecute the mortgage firm’s former Chairperson, Lee Farkas, with 16 counts of conspiracy, securities fraud and bank fraud.

While Brown and Farkas negotiate over how much prison time each is likely to do, former Countrywide financial CEO Angelo Mozilo will not face criminal charges at all, having paid off the right people paid a hefty civil fraud settlement of $67.5 million.

According to the WSJ:

People familiar with the federal criminal probe say that the general collapse in the mortgage market made it more difficult to pinpoint the actions of any particular executive as something that could be prosecuted.

Read more:

I wonder, can the authorities successfully “pinpoint the actions of any particular executive” only when the executives are women, or only when the executives don’t have $67.5 million under the couch cushions? Or did federal investigators just forget to read this book that spells out who caused the mortgage crisis?

image credit, StockExchange user shuttermon