Grimy Times Exclusive: Teresa Kelly, a former operations supervisor in Colonial Bank’s Mortgage Warehouse Lending Division, pleaded guilty to conspiring to commit bank, wire and securities fraud in a Virginia federal court.
Kelly, 35, of Ocoee, Fla., admitted to her role in a fraud scheme that contributed to the failures of Colonial Bank and Taylor, Bean & Whitaker (TBW). The scheme involved the purchase of over $400 million in assets with no value.
According to court documents, Kelly and her co-conspirators at Colonial Bank and TBW engaged in a series of fraudulent actions to cover up overdrafts in TBW’s master bank account at Colonial Bank. This included sweeping overnight money from one TBW account with excess funds into another and the fictitious “sales” of mortgage loans to Colonial Bank.
Kelly admitted that she knew and understood that she and her co-conspirators had caused Colonial Bank to pay TBW for assets that were worthless to the bank. The conspirators also caused TBW to engage in sales to Colonial Bank of fictitious trades that had no collateral backing them and had no value.
Kelly faces a maximum penalty of five years in prison when she is sentenced on June 17, 2011. The U.S. Securities and Exchange Commission (SEC) filed civil charges against Kelly in the Eastern District of Virginia in a related action.
The guilty plea was announced by Assistant Attorney General Lanny A. Breuer of the Criminal Division and U.S. Attorney Neil H. MacBride for the Eastern District of Virginia.
On June 17, 2011, Kelly will face sentencing in the Eastern District of Virginia. The case highlights the need for increased oversight and accountability in the financial industry.
Related Federal Cases
- Lara Coleman, Mail and Wire Fraud, Virginia 2023 · Florida
- Sandra Ball, Wire Fraud, West Virginia 2013 · New Hampshire
- Amy Lynn Galloway, Bookkeeping Fraud, Virginia 2016 · Florida
- Eyal Katz, Immigration Fraud and Money Laundering, Virginia 2024 · Washington
- William E. Grobes, IV, Wire Fraud and Money Laundering, Virginia 2016 · Kentucky
Key Facts
- State: Federal
- Category: White Collar Crime
- Source: DOJ Press Release â†â€â€
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