Ex-Taylor Bean CEO Pleads Guilty In $2B Fraud Case

Law360, New York (April 1, 2011, 6:16 PM EDT) -- The former CEO of Taylor Bean & Whitaker Mortgage Corp. pled guilty to fraud Friday in a Virginia federal court in connection with a $2 billion securities scheme that took down the mortgage lender and Colonial Bank.

Paul Richard Allen, a former senior economist at Freddie Mac, faced one count of bank, wire and securities fraud and one count of lying to investigators in the U.S. District Court for the Eastern District of Virginia. He faces five years in prison.

Allen is the sixth executive tied...
To view the full article, register now.