Hi,
The below was published on Risk.Net today:
Lee Farkas, former chair of TBW, has been sentenced to 30 years and ordered to pay back $38.5 million
Lee Farkas, former chair of Taylor, Bean & Whitaker (TBW), has been sentenced to 30 years in prison and ordered to forfeit $38.5 million. Farkas was found guilty in April this year of 14 counts of conspiracy to commit bank, wire and securities fraud and also substantive counts of bank, wire and securities fraud.
Farkas was found guilty of stealing more than $38 million for personal gain from TBW and Colonial Bank. He used the stolen money to buy a jet, expensive antique and collector cars and multiple holiday homes. Court documents show Farkas and his co-conspirators misappropriated a total of $2.9 billion in an effort to conceal and cover TBW’s operating losses from 2002 until 2009.
His fraud was discovered when he tried to obtain Troubled Asset Relief Program (Tarp) funds to fund the billions of dollars of losses at TBW and Colonial Bank. It has been described by the prosecution as “one of the largest bank frauds in history”.
Read more: http://www.risk.net/operational-risk-and-regulation/news/2095075/chair-taylor-bean-whitaker-sentenced#ixzz1TEfWGikk
This best describes the major risk of OpRisk, which is people and internal fraud.
The below was published on Risk.Net today:
Lee Farkas, former chair of TBW, has been sentenced to 30 years and ordered to pay back $38.5 million
Lee Farkas, former chair of Taylor, Bean & Whitaker (TBW), has been sentenced to 30 years in prison and ordered to forfeit $38.5 million. Farkas was found guilty in April this year of 14 counts of conspiracy to commit bank, wire and securities fraud and also substantive counts of bank, wire and securities fraud.
Farkas was found guilty of stealing more than $38 million for personal gain from TBW and Colonial Bank. He used the stolen money to buy a jet, expensive antique and collector cars and multiple holiday homes. Court documents show Farkas and his co-conspirators misappropriated a total of $2.9 billion in an effort to conceal and cover TBW’s operating losses from 2002 until 2009.
His fraud was discovered when he tried to obtain Troubled Asset Relief Program (Tarp) funds to fund the billions of dollars of losses at TBW and Colonial Bank. It has been described by the prosecution as “one of the largest bank frauds in history”.
Read more: http://www.risk.net/operational-risk-and-regulation/news/2095075/chair-taylor-bean-whitaker-sentenced#ixzz1TEfWGikk
This best describes the major risk of OpRisk, which is people and internal fraud.
