The U.S. Securities and Exchange Commission (SEC) issued a press release today announcing that it had
"charged a former vice president at Colonial Bank who was the head of its mortgage warehouse lending division with conducting a $1.5 billion securities fraud scheme."
Under Kissick, the former vice president at Colonial Bank and head of the mortgage warehouse lending division, the bank bought "fictitious and impaired mortgage loans and securities" from Taylor, Bean & Whitaker Mortgage Corp. (TWM). Kissick, along with Farkas and Brown of TWM, created the fictitious loans and mortgage-backed securities to conceal TWM's overdrawing of its line of credit with the bank when TWM faced liquidity problems. Kissick also falsely reported to the investing public that the mortgage loans and securities held by the bank were "high-quality, liquid assets." The SEC Complaint can be found on the SEC's website.
