Guilty plea in Colonial Bank fraud case
Catherine Kissick, the former senior vice president of Colonial Bank and head of its mortgage lending division, pleaded guilty Tuesday to conspiring to commit bank, wire and securities fraud in a scheme that led to the downfall of Colonial Bank and another company Taylor, Bean & Whitaker.
Kissick, 50, of Orlando, Fla., worked with Lee Farkas, who was chairman of Taylor Bean and faces a 16-count indictment for his role in the scheme.
Kissick faces a maximum of 30 years in prison. She is scheduled to be sentenced June 17. The Securities and Exchange Commission also filed an enforcement action Tuesday against Kissick in the Eastern District of Virginia.
According to court documents, Kissick admitted that from 200 through August 2009 she and her co-conspirators, including Farkas, engaged in a scheme to defraud various entities, including Colonial Bank and the Troubled Asset Relief Program (TARP).
Kissick admitted that she was part of a scheme that caused Colonial Bank to purchase and hold more than $400 million in assets on their books that had no value, according to a press release.
The case is being jointly prosecuted by the Justice Department's Criminal Division and the U.S. Attorney's Office for the Eastern District of Virginia.
| March 2, 2011; 2:54 PM ET
Categories: Around the Nation, Dana Hedgpeth, Financial Crimes, From the Courthouse
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