Where does Farkas rank on scofflaw list?

The question is, should he be an enduring face of the avarice that drove the nation to the brink of economic collapse?

It depends whom you ask.

The government believes so: Federal prosecutors seek the statutory maximum of 385 years in prison. At the very least they want 50 years behind bars, to “draw the attention of corporate executives” and to “provide necessary and substantial general deterrence.”

“Between 2007 and August 2009, as the country faced one of the worst financial crises in recent history largely sparked by suspect mortgage-related transactions, Farkas ramped up his scheme to rip off banks through sales of fake mortgage assets and by double-and triple-selling mortgage loans,” prosecutors wrote in their sentencing memorandum to the court.

They say a lengthy sentence will “send the most forceful and unequivocal message to senior corporate executives that engaging in fraud and deceit in order to pump up your company or line your own pockets is unacceptable and will have severe consequences.”

Defense attorneys, who plan to appeal Farkas' conviction, understandably seek to distance their client from the harsh glow of the financial meltdown. They say similarities between Farkas' actions and those of financial executives who engaged in complex, predatory lending schemes during the housing bubble weren't “well-developed” at Farkas' trial.

Farkas was found guilty in April of perpetrating a $2.9 billion fraud scheme that involved selling fake loans to a major bank, deceiving regulators, submitting false financial reports and attempting to fraudulently obtain federal bailout (TARP) funds. He's also said to have pocketed at least $40 million to fund a personal jet, vacation homes, an antique car collection and side ventures.

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Most financial leaders of the large Wall Street firms have yet to face criminal charges. Some experts say there's a reason Farkas is in this predicament and others are not.

“I don't think any (financial crimes) were as blatant as TBW's,” said Peter Henning, a law professor at Detroit's Wayne State University who studies white-collar fraud. “That's why I think corporate executives are going to look at Farkas and say, ‘I'm not him, you can't put me in the same category.' The kind of misconduct that's being looked at on Wall Street, those executives weren't involved in day-to-day operations like Farkas was.

1031 Tax Group Okun Swindle “Mantra”: “The plaintiffs' money has ...

In the last paragraph of the July 9th blog, the writer unintentionally tips their hand by indirectly demonstrating a lack of knowledge concerning the circumstances of these unfortunate events. The blogger writes “As usual nobody is taking responsibility for these illegal transactions. The McCabes are stating that they are innocent and victims of Okun’s dirty dealing. So the beat goes on, victim’s monies disappear and nobody is left holding the bag–except the victims.” The blogger, through misunderstandings of the intricacies of this case, is mixing the civil case that has been brought against the McCabes with the federal, criminal charges that have been brought against Ed Okun.

The blogger cites two civil cases brought against the McCabes by former exchangers (Sergio S. Alvarez v. Daniel E. McCabe and Ward Enterprises LLC v. Daniel E. McCabe). Indeed, these two suits have been filed against the McCabes, but these two suits are civil actions brought in civil courts. Ed Okun has been charged in a federal court, with numerous criminal infractions. Not only is this a different jurisdiction, but the accusations connected with this case are different from those brought against the McCabes. In fact, the charges brought against Ed Okun are not only stating that he has broken civil statutes, but that he has also conducted illegal activity that will warrant significant jail time. The truth of the matter is that Ed Okun has only avoided additional Civil charges (similar to those brought against the McCabes but in higher numbers) by declaring bankruptcy. By declaring bankruptcy, Okun has moved all of his stolen and legitimate assets into federal jurisdiction. It is the function of the federal bankruptcy court to liquidate Okun’s assets and pay off his creditors. Those creditors include the 1031 exchange clients, but also include many other legitimate creditors. The nature of the Federal Bankruptcy Court mandates that all creditors are reimbursed as much as possible, regardless of the nature of how the debt was accumulated. By moving into federal bankruptcy court, there is nothing that jilted clients can do to recover damages from Okun, as all of his assets are under the protection of the Federal Bankruptcy Court. The problem is, Okun used all of the stolen money to purchase his numerous multi-million dollar mansions, his fifteen $200,000 plus exotic automobiles, his automobile racing team, his wife’s expensive jewelry, his yacht and who knows what else. When all of these items are liquidated by the Federal Bankruptcy Court, there is little chance that there will be enough funds to pay off clients as most of those exotic purchases are highly depreciating assets that are worth far less now than when they were purchased.

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