Sunday, July 24, 2011
Terri Huber, 
Submitted by: Terri Huber

Original I am the sister of Lee Farkas

We received an unsolicited letter from the sister of Lee Farkas, the former CEO of Taylor, Bean & Whitaker Mortgage Corp. whom a jury in April found guilty of all 14 counts of conspiracy and bank, wire and securities fraud in connection with his masterminding a scheme to defraud banks and the government out of billions of dollars.

I am the sister of Lee Farkas.  Lee asked me to write to you and explain some things that have not been public.  First of all, Lee understands that all of this is old news by now but he felt compelled to get the information out.  It is certainly up to you to do what you want to do with the information at this time.

Lee is spending the rest of his life in prison. It has been very difficult for me to understand how this is going to help anybody in anyway.  Do you think that it is justified for the government to use Lee as a scapegoat for the mortgage crises, figure out that he is not their man and throw him in jail anyway and everyone will forget about him? Should the taxpayers be responsible to foot the bill for Lee Farkas? The taxpayers ultimately have to pay for him living the rest of his life in prison. We are putting an intelligent, feeling human behind bars in prison, locked up and what good is that going to do any of us?  This is the governments answer to the mortgage crises blame Lee Farkas for mortgage crises, give Neil Barofsky something to boast about as he does in his letter to Barack Obama.  Sigtarp was the lead law enforcement agency in the criminal investigation and prosecution of Lee Farkas.  Neil resigned after he “got his man”.

We should be very scared by the tactics of the US Government because I have witnessed them first hand.Does this make interesting news?  Probably not, is there another side to all the propaganda that has been written about Lee Farkas?

Here are some words from Lee Farkas.

Due to the Government’s pressing need to prosecute someone for the financial crises of 2008 – 2009, he believes they are using him as a scapegoat.

Prosecutor Stokes comments at the sentencing that Farkas single-handedly caused Colonial Bank’s failure when the FDIC  analysis said otherwise.

Colonial Bank’s failure was caused by bad commercial loans that the bank made and had nothing to do with Lee Farkas.

The Government including the shareholders of Colonial Bank, as victims of the crime in this case is ridiculous. Any shareholders of Colonial stock from 2002-2009 were invited to be victims by the Government.

The fact is that Taylor Bean and Whitaker paid over one billion dollars in interest to Colonial from 2007-2009 alone, more thatn the “crime” netted. TBW was actually the only profitable business Colonial had in 2008 and 2009.

The assertion that Lee Farkas was going to steal the TARP money from Colonial is again ridiculous.  Every dollar in this crime was recorded as debt fully personally guaranteed by Farkas. There was no attempt to hide the amount that TBW owed to Colonial.

All government witnesses testified that the obligation from TBW to Colonial was fully collateralized. Prosecutors conveniently dismissed all of that testimony and evidence.

The FDIC testified as a victim at sentencing. They stated that their figures discounted the collateral, so that means that the large loss figures were grossly inflated by ignoring the real collateral. The judge would not allow the defense to provide evidence during the trial that Colonial was fully collateralized yet sentenced Farkas based on the “hole”  or lack of collateral.  The “hole” was actually created when Freddie Mac and Ginnie Mae seized portfolios which were capitalized on.  TBW’s balance sheet at over a billion dollars and ran.

After the resignation of Lee Farkas from TBW,

Troutman Sanders from Atlanta and Navigant Consulting from Chicago looted TBW of more than $50 million in fees and sold greater than or more than another billion dollars of assets for pennies on the dollar.   This created even more unjustified fees and then almost a 2 billion “hole” in TBW’s balance sheet.  The Government took the oney from TBW and prosecuted Lee Farkas for it and sentence him to prison for the rest of his life and took every dime that he had.

Lee Farkas was not remorseful simply because he believes that he hasn’t committed any crime.

So there you have it, as Paul Harvey used to say, the rest of the story.

~ Terri Huber

There is no question the American justice system is a pathetic excuse for law that is woefully uncreative and heavily biased toward politically-connected plutocrats. We believe wholeheartedly that far more creative punishments should be levied against financial crooks than simply throwing them in jail at the tax payers expense.

Federal prosecutors are seeking the statutory maximum sentence of 385 years for Farkas.

It's also clear that Mrs. Huber has been submitting articles to a numerous publications and people in her own efforts to affect the judicial process and clear her brother's name. We certainly don't begrudge her efforts. 

Terri Huber's letter to the Honorable Leonie M Brinkema

Dear readers, do you believe that the government used Lee as a scapegoat for the mortgage crises? Do you believe that his peronsal letters are of any consequence given the charges levied against him? Is it possible that Lee Farkas is completely innocent as he claims?

Posted by Editor on 07/24/11 at 12:54 PM •  (0) Comments

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