Today's lesson...

[Irving]

A robbery usually puts people in direct physical danger to their lives. Fraud does not.

[Hoosier]

Well, it was pretty easy to find out what his role in the fraud was. and it appears that his role was fairly substantial. He should be doing a lot more than 40 months:

“Mr. Allen was not treated as a CEO. He did not function as a CEO,” said defense lawyer Stephen Graeff. “Sentence Mr. Allen the man, not Mr. Allen the title.”

But Brinkema said Allen’s title was significant, adding Allen’s reputation in the industry lent credibility to Taylor Bean that it otherwise would not have had. Even worse, Brinkema said, Allen had subordinates who were reporting the problems to Allen, but Allen left them to fend for themselves. One of those Taylor Bean employees, Sean Ragland, also was sentenced Friday to three months in prison and nine months of home detention for his role in the scheme.

“I can’t understand why in the world you didn’t stop it,” Brinkema told Allen.

Allen, for his part, apologized to his family and to “the entire financial community.”

By the time Allen became CEO in 2003, the fraud was already under way, and Taylor Bean owed more than $100 million to Colonial. Allen’s part in the schemes, came later, especially in the commercial paper loans from Deutsche bank and BNP Paribas that eventually grew to become the largest part of the fraud.

Ragland and Allen are the fifth and sixth persons to be sent to prison as part of the Taylor Bean-Colonial fraud, and investigators say the investigation is continuing. Sentences have ranged from three months to eight years.

All six received credit on their sentences for cooperating with investigators and testifying at Farkas’ trial.

“Mr. Allen’s sentence reflects his ultimate cooperation with this investigation, but also sends the message that unless executives expose and stop fraud when they first learn of it, they will be punished,” said Neil MacBride, U.S. Attorney for the Eastern District of Virginia.

Sounds like the dirtbag got off pretty easy. As for the homeless guy - 15 years? Really? I think the sentences should be switched.

I'm really not sure what the "Lesson of the Day" in this is.

+1 you beat me to it

[Byte Stryke]

lesson of the day
If you are going to screw up... go big!

[Stinky]

The sentence in federal court is a firm sentence...there ain't no good time. The time he was sentenced to is the time that he'll serve, whereas the guy who got 15 years...he could be out on his first parole hearing.

[tmleadr03]

Eh, homeless guy is now going to get 15 years of free cable tv, free gym, three hots, someplace to sleep, a damn good library, and the free time to make the most of all of it. Win for the homeless guy.