Taylor Bean’s Farkas Moved Funds to Mask Deficit, Ex-CEO Says
This article is for subscribers only.
Taylor, Bean & Whitaker Mortgage Corp.’s former chief executive officer, Paul Allen, said the company’s chairman, Lee Farkas, drained funds from a unit in a bid to hide shortfalls at the mortgage lender.
Allen, testifying in Farkas’s criminal trial yesterday in federal court in Alexandria, Virginia, told the jury Taylor Bean-owned Ocala Funding LLC had a deficit of $681 million in April 2008. Some funds for the commercial paper facility were diverted to an account that Farkas set up without his knowledge, said Allen, a witness for the government.