In a shocking turn of events, Delton de Armas, former chief financial officer of Taylor, Bean & Whitaker Mortgage Corp., was sentenced to 60 months in prison for his role in a massive $2.9 billion mortgage fraud scheme.
The scheme, which lasted from 2005 to 2009, saw de Armas and his co-conspirators engage in a series of lies and deceits to conceal billions of dollars in losses from financial institutions.
According to court documents, de Armas, 41, of Carrollton, Texas, joined TBW in 2000 as its CFO and reported directly to its chairman, Lee Bentley Farkas, and later to its CEO, Paul Allen.
De Armas previously admitted in court that he and other co-conspirators engaged in the scheme to defraud financial institutions that had invested in a wholly-owned lending facility called Ocala Funding.
Ocala Funding obtained funds for mortgage lending for TBW from the sale of asset-backed commercial paper to financial institutions, including Deutsche Bank and BNP Paribas.
De Armas was sentenced by U.S. District Judge Leonie M. Brinkema in the Eastern District of Virginia on [no date provided]. He pleaded guilty in March to one count of conspiracy to commit bank and wire fraud and one count of making false statements.
The sentence reflects the seriousness of de Armas’s role as a gatekeeper within TBW and the contribution of his crime to our nation’s financial crisis.
De Armas’s crimes resulted in the loss of more than $2.4 billion to major financial institutions, causing devastating losses to institutional investors.
The case was brought by the U.S. Attorney’s Office for the Eastern District of Virginia, the FBI, and the Office of the Special Inspector General for the Troubled Asset Relief Program (SIGTARP).
Dollar amounts: $2.9 billion, $2.4 billion, $700 million, $1.5 billion
Defendant: Delton de Armas, former CFO of Taylor, Bean & Whitaker Mortgage Corp.
Criminal charges: conspiracy to commit bank and wire fraud, making false statements
City and state: Carrollton, Texas
Outcome: 60 months in prison
Date: [no date provided]
Related Federal Cases
Key Facts
- State: Virginia
- Category: White Collar Crime
- Source: DOJ Press Release â†â€â€
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