Gay Mortgage CEO Lee Farkas Indicted in Billion-Dollar Fraud Scheme

Lee Farkas, the CEO of a major mortgage lender which failed last year, was indicted this week in a multi-billion dollar fraud scheme tied to the Wall Street bailout program and the failure last year of Colonial Bank, ABC News reports:

Farkas  "The total losses for the Federal Deposit Insurance Corp. that stemmed from fall of Colonial, one of the country's 50 largest banks in 2009, could exceed $3 billion, Washington officials said.

Lee Farkas, chairman of Taylor, Bean and Whitaker Mortgage Corp., allegedly defrauded Colonial by selling it more than $1.5 billion in fake or fraudulent mortgage loans. Farkas was indicted in a 16-count indictment for overseeing a seven-year fraud that hid massive accounting losses at Taylor, Bean and Whitaker."

A Towleroad reader informs us that Farkas is gay and he and his partner Sean Murla owned a house in Key West for several years and were active in Equality Florida.

ABC News adds, "According to a detention memorandum filed in federal court in Florida, prosecutors uncovered an e-mail from July 2004 in which one unidentified co-conspirator wrote to Farkas about moving funds to hide their tracks and potential losses. 'You need to wire money into this account on the OD [overdraft] report. It does not look good to have a T&I [tax and insurance] account in the OD report.'

Farkas wrote back, 'When I get an adjoining suite with martha stewart [sic], it will be worse. I never should have used that money in the first place.'

Justice Department officials also alleged that Farkas and other uncharged conspirators used PIN messages in their BlackBerry's to circumvent company computer servers to carry out the fraud and avoid an electronic trail."


  1. Jakey Wakey says

    What a shame. I knew him in passing. Very generous guy but always so intense and jumpy. I thought it was coke but I guess it was this instead. LOL. Good luck to you brotha.

  2. TANK says

    “good luck to you brotha”

    What kind of moral vacuum do you inhabit? Some people just give me the creeps…and you’re one of ’em. Lotsa gay tom ripleys around.

    I hope this guy never sees the light of day again.

  3. TANK says

    why will gay men like prison? I’ve heard stories of gay men that were brutally raped so often that they got aids, other sti’s, and torn rectums…

    Prison is worse for gay people than most straight people, in fact. Most prisoners in the u.s. are violently homophobic. Their sexuality is used to justify the sexual torture that they endure daily…rapes and beatings and killings…constant…no, he won’t enjoy prison…I guarantee it.

  4. TANK says

    and the constant violent rape, beatings and murder are tolerated and, in many cases, encouraged by violently homophobic prison staff…who in many cases, deserve to be housed their against their will themselves.

  5. TANK says

    Yes, so that justifies rape, murder and torture because you’re gay…welcome to america.

    And I’m not feeling anything for this guy but contempt and disgust. he should go to prison for the rest of his life.

  6. says

    Ya’ll are a bunch of uneducated and ignorant boneheads to comment in such a deragatory manner. What are ya’ll like 12?

    Worry about your own beef. Lee will be just fine.

    We wish you the best Lee and Sean!



    Old school TBW’s

  7. Gregg says

    It’s gonna be a domino effect from now on….Sean Murla (used as his alter ego for Furkas’s most recent businesses), Todd Barfield, then shutting down all his gay bars and clubs all over the country…

  8. KYM says

    They also say Farkas may currently be engaged in dealings with an Atlanta-based mortgage company where he is “funneling assets” and suggest “there is a significant danger the defendant may engage in future criminal activity.” His life partner Sean A. Murla is involved in these plans.

  9. POLLY says

    “It was agreed during the hearing that a $2 million bond would be secured by mortgages on Farkas’ southwest Ocala home and a piece of Fort Lauderdale property owned by a friend, Sean Murla”.

    They now want to cover the fact that Sean is still his boyfriend and partner in crime…it’s the case to say!

  10. Patti says

    Todd Barfield just contacted my home from his cell phone 352-895-8000. There shouldn’t be any reason this individual should be contacting me unless my evil and vindictive ex CARL SELLERS is behind it

  11. Jerry says

    Okay, as far as all the rape in prison:

    This guy did not end up in maximum security. He’s a non-violent white collar criminal, so his time is served pretty much like Martha Stewart.

Leave A Reply