Fannie Mae Silence on Taylor Bean Enabled $3B Fraud

The first sign of a $3 billion fraud surfaced Jan. 11, 2000, when a Fannie Mae executive discovered Taylor, Bean & Whitaker Mortgage Corp. sold him a loan owned by someone else.

Palm Coast, FL – June 30, 2011 – An explosive report from Bloomberg.


The first sign of what would ultimately become a $3 billion fraud surfaced Jan. 11, 2000, when Fannie Mae executive Samuel Smith discovered Taylor, Bean & Whitaker Mortgage Corp. sold him a loan owned by someone else.
Fannie Mae officials never reported the fraud to law enforcement or anyone outside the company. Internal memos, court papers, and public testimony show it sought only to rid itself of liabilities and cut ties with a mortgage firm selling loans “that had no value,” as Smith, the former vice president of Fannie Mae’s single family operations, said in a 2008 deposition.
Full Story >>>> Bloomberg

3 replies
  1. John
    John says:

    Great read

    This is a fascinating tale of deceit, greed, and the demise of some people that have always been "above the law". I wonder what Vegas has for odds on Farkas’ sentencing.

  2. John
    John says:

    Answered my own question

    This is what I found on another site:

    Federal prosecutors seek the statutory maximum of 385 years in prison. At the very least they want 50 years behind bars, to "draw the attention of corporate executives" and to "provide necessary and substantial general deterrence."

  3. John
    John says:

    Compromise

    Looks like they met somewhere in the middle of no time and 5 times the average persons life span and arrived at 30-years. As it stands he will be in jail until he is 88 years old.

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