Federal grand adjudicators have charged the past Chief Executive of what was once amongst the country's largest self-governing home-loan suppliers on 16 counts of deception.

In documents filed in a federal district court in Virginia, prosecutors said Lee Bentley Farkas, who was at one time the Chief Executive of Taylor, Bean & Whitaker Mortgage Corp., caused no less than $1.9 billion losses via a trick that began as early as 2002.

Attorney Anthony L. Cochran said that Farkas will submit a plea to be not guilty, and will also defend against the accusations that have been placed upon Farkas. There is also a desire to clear Farkas' name the day he is in the court for hearings.

Prosecutors said Taylor, Bean Whitaker and Colonial BancGroup Inc. were involved in a multifaceted scheme to move money from financial records to camouflage shortfalls.

The day after wiping out money, the conspirators would cause the funds to be returned to another account, only to have to brush money back into the master account later that day, so as to hide the arrears once more, a court filing said.

In addition, the court filing said Farkas and his co-conspirators also tried to have an access to Government bailout funds by obtaining a major stake in Colonial BancGroup, in order to get a $500 million in taxpayer money.