Wednesday, March 2, 2011

Expected: Colonial exec pleads guilty, acknowledges still more conspirators

No big shocka here.

Ms. Kissick, Senior Vice President and Director of both the Institutional Services Division and Mortgage Warehouse Lending Division of the once mighty $26 billion Colonial BancGroup, plead guilty today in US District Court for the Eastern District of Virginia.

Kissick, like Desiree Brown a week earlier, has agreed to cooperate with the prosecution, and Kissick said there were other yet-to-be-named co-conspirators at Colonial and Taylor Bean & Whitaker who participated in the scheme.

Kissick faces up to 30 years in prison and is scheduled for sentencing in June, but sentencing guidelines and the scope of her cooperation would likely reduce that time significantly.

It should come as no surprise that there are still others out there who have not yet been named or indicted. Brown and Kissick are just the start, and political pressure is growing on TARP fraud investigators to get a scalp or three from someone sitting at the top of the financial institutions.

There are several targets…

Exit Question: Lee Farkas is now only weeks away from trial and two people with direct knowledge of the scheme he allegedly engaged in have already flipped. If he’s next, how long can it be before the top of the food chain at Colonial gets fingered?

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