Raymond Bowman, Bank, Wire and Securities Fraud, Virginia 2011

Former TBW President Pleads Guilty to Fraud Scheme

A former president of Taylor, Bean & Whitaker (TBW), Raymond Bowman, has pleaded guilty to conspiring to commit bank, wire and securities fraud in Virginia. Bowman, 45, of Atlanta, pleaded guilty before U.S. District Judge Leonie M. Brinkema in the Eastern District of Virginia on June 10, 2011.

Bowman faces a maximum penalty of five years in prison on the conspiracy charge and a maximum penalty of five years in prison on the false statements charge. The charges stem from a scheme that contributed to the failures of TBW and Colonial Bank.

According to court documents, Bowman admitted that from 2003 through August 2009, he and his co-conspirators, including former TBW chairman Lee Farkas, engaged in a scheme to defraud various entities and individuals, including Colonial Bank, a federally-insured bank, Colonial BancGroup Inc., and the investing public.

The scheme caused Colonial Bank and Colonial BancGroup to purchase tens of millions of dollars of worthless assets, caused Colonial BancGroup to report false information in its financial statements, and artificially inflated the value of TBW's mortgage servicing rights.

Bowman also admitted that he directed co-conspirators to manipulate TBW's borrowing base by billions of dollars to artificially inflate the MSR valuations and to avoid a margin call.

The scheme was uncovered and Bowman was charged with conspiring to commit bank, wire and securities fraud, and lying to federal agents about his role in the scheme.

Bowman's guilty plea is a significant blow to those involved in the scheme, and highlights the importance of holding individuals accountable for their actions.

Source: https://www.justice.gov/archives/opa/pr/former-president-tbw-pleads-guilty-fraud-scheme