ALEXANDRIA, Va. (AP) The one-time chairman and majority owner of what was once one of the country's largest privately held mortgage lenders is going on trial for an alleged fraud scheme of nearly $2 billion.
The alleged scheme contributed not only to the collapse of Taylor Bean & Whitaker, but also took down a major regional bank.
A jury in federal court in Alexandria, Va., is expected to hear opening statements Monday in the fraud trial of Lee Bentley Farkas, the former chairman of Florida-based Taylor Bean.
Roughly 2,000 Taylor Bean employees lost their jobs when the company collapsed in 2009. The collapse also helped take down Alabama-based Colonial Bank ‚Äî the sixth-largest bank failure in U.S. history.
Several executives at Colonial and Taylor Bean have entered guilty pleas in the case.