Bank Exec Gets 8 Years in Prison: How is this different from the big banks?

Sep 4, 2015

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The problem I have here is not that this guy went to jail, but rather that he was doing the same thing that the other banks were doing, in one form or another. It looks like he is thrown under the bus in place of several hundred people who deserve the same fate. Taking the money from investors under false pretenses and then keeping a substantial chunk of it as trading profits seems to be right in line with what this guy did. Making false claims about losses and taking bailout money to cover those losses sounds pretty much like this case as well. False entries and fabrications are the stock and trade of every bank that is trying to foreclose on loans that a e subject to claims of securitization. And THAT is why I am a proponent of rescission — it is the last and best chance of getting to the truth about the identity of the creditors.

see http://www.housingwire.com/articles/34968-exec-at-center-of-first-tarp-bank-failure-gets-8-years-in-prison

All in all, Shabudin was found guilty of seven crimes:

Count One: Conspiracy to Commit Securities Fraud, with a maximum penalty of 25 years of imprisonment, a $250,000 fine, a 5-year term of supervised release, and a $100 special assessment.

Count Two: Securities Fraud, with a maximum penalty of 25 years of imprisonment, a $250,000 fine, a 5-year term of supervised release, and a $100 special assessment.

Count Three: Falsifying Corporate Books and Records, with a maximum penalty of 20 years of imprisonment, a $5,000,000 fine, a 3-year term of supervised release, and a $100 special assessment.

Count Four: False Statements to Accountants, with a maximum penalty of 20 years of imprisonment, a $5,000,000 fine, a 3-year term of supervised release, and a $100 special assessment.

Count Five: Circumventing Internal Accounting Controls, with a maximum penalty of 20 years or imprisonment, a $5,000,000 fine, a 3-year term of supervised release, and a $100 special assessment.

Count Six: Conspiracy to Commit False Bank Entries, Reports, and Transactions, with a maximum penalty of 5 years of imprisonment, a $250,000 fine, a 3-year term of supervised release, and a $100 special assessment.

Court Seven: False Bank Entries, Reports, and Transactions, with a maximum penalty of 30 years of imprisonment, a $1,000,000 fine, a 5-year term of supervised release, and a $100 special assessment.