Lee Farkas, Ex-CEO of Bankrupt Mortgage Lender TBW, Indicted on TARP Fraud
The indictment in Virginia accuses Farkas and unnamed co-conspirators of submitting false information to the Federal Deposit Insurance Corp. and to the Securities and Exchange Commission when trying to obtain money from the TARP for their company -- TBW, which was once among the largest privately held mortgage lending companies in the country. TBW filed for bankruptcy and ceased operating in August 2009. But according to the indictment, the firm's troubles began in 2002, and it was while trying to cover up the problems that the scheme was devised.
While the "scheme ultimately led to the misappropriation of more than $1 billion" from various sources, according to the 30-page indictment, Farkas and his co-conspirators were never actually successful in obtaining any TARP funds.