SEC Charges Former Supervisor at Colonial Bank for Role in Securities Fraud Scheme
March 22, 2011
Total Loss:
$1.5 Billion
The Securities and Exchange Commission today charged the former operations supervisor of Colonial Bank's mortgage warehouse lending division (MWLD) with participating in a $1.5 billion securities fraud scheme.
The SEC alleges that Teresa A. Kelly enabled the sale of fictitious and impaired mortgage loans and securities from the MWLD's largest customer - Taylor, Bean & Whitaker Mortgage Corp. (TBW) - to Colonial Bank. She caused these securities to be falsely reported to the investing public as high-quality, liquid assets.
Source:
Washington D.C. CityBizList
Posted in:
Internal Fraud