April 5 (Bloomberg) -- The former president of Taylor, Bean & Whitaker Mortgage Corp., Raymond Bowman, said ex-Chairman Lee Farkas ordered data sent to Colonial Bank for nonexistent loans in an effort to cover up the company’s growing deficits.
Bowman, 45, testifying in federal court in Alexandria, Virginia, today for the government, said Farkas in 2003 explained that the sale of “dummy” loans, known as Plan B, were necessary to prevent Taylor Bean from going out of business.
“I told him I didn’t think it was a good idea,” said Bowman, who pleaded guilty last month to conspiracy and making false statements. Bowman said he thought the plan was unethical and “possibly illegal.”
Suffice it to say that if the CEO of Taylor Bean was running things on his side of the scheme, the micromanager and CEO of Colonial BancGroup was running things on the Montgomery side.