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RICHMOND, Va., Apr 2 (UPI) -- The former chief executive of Taylor, Bean & Whitaker pleaded blameable in Richmond, Va., weekday to his role in a $1.5 billion mortgage fraud scheme.

Paul Allen, the former chief executive officer at the now-shuttered mortgage loan concern admitted making simulated statements and conspiring to send slope and accommodate fraud as part of the scheme that contributed to the unfortunate of TBW, the Justice Department said in a release.

Allen, 55, of Oakton, Va., faces up to fivesome eld in prison for apiece calculate when he is sentenced June 21.

Allen admitted in suite that from 2005 through most of 2009, he and another co-conspirators schemed to defraud business institutions that had endowed in a wholly owned disposition artefact called Ocala Funding. Ocala Funding upraised money by selling asset-backed commercial essay to business institutions, including Deutsche Bank and BNP Paribas, and utilised the money to acquire TBW mortgages. The operation was managed by TBW and had no employees of its own.

Authorities feature presently after Ocala Funding was created, comedienne learned there were not sufficiency assets backing its commercial essay and he told a co-defendant to produce reports that hidden the shortfall.

Five another individuals also hit pleaded blameable in the case.