May 2, 2011
On April 19th, a jury convicted Lee B. Farkas of 14 counts of fraud and conspiracy for pyramiding 2.9 billion dollars of fraudulent mortgages.
A witness recalled Farkas saying, “I could rob a bank with a pencil.”
In his defense, Farkas stated, “It’s very common in our business ... to sell loans that don’t exist. It happens all the time.”
Yes, the frauds happen all the time. It’s only prosecutions and convictions that are rare.