4th Circ. Affirms SEC Ban For Ex-Taylor Bean Chairman

Law360, Los Angeles (February 11, 2014, 5:50 PM EST) -- A Fourth Circuit panel on Tuesday rejected former Taylor Bean & Whitaker Mortgage Corp. Chairman Lee Bentley Farkas’ attempts to overturn a U.S. Securities and Exchange Commission injunction barring him from managing mortgage-related companies, ruling Farkas’ criminal conviction justified the injunction under collateral estoppel.

In an unpublished, per curiam decision, the panel dismissed Farkas’ objections to a district court decision that granted the SEC’s injunction based on Farkas’ conviction. Farkas argued that his criminal jury was improperly instructed on the definition of “security,” and that the...
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