The executive, Paul Allen, was charged in federal court in Alexandria, Virginia, with one count of conspiracy to commit bank, wire and securities fraud and one count of false statements, according to the documents filed on Friday.
One source said a plea hearing for Allen was scheduled for Friday before Judge Leonie Brinkema, who already has heard a number of other TBW executives admit wrongdoing in one of the biggest fraud cases so far in the U.S. mortgage meltdown.
Another source said Allen was expected to plead guilty. The charges both carry a maximum sentence of five years in prison.
The latest case became public right before the scheduled start next week of a trial of former TBW Chairman Lee Farkas, who faces criminal charges of 16 counts related to the losses at the company.
Federal prosecutors have said the scheme involved some $1.9 billion in losses related to fraud so far.
The collapse of TBW also contributed to the downfall of one of the 50 largest U.S. banks, Alabama-based Colonial Bank , which had sought funds from the federal bank bailout program, the Troubled Asset Relief Program.
Both firms filed for bankruptcy protection in August 2009.
Other TBW executives who have pleaded guilty include former President Raymond Bowman; former Treasurer Desiree Brown; and Sean Ragland, a former senior financial analyst. Executives from Colonial Bank also have pleaded guilty.
The case is USA v. Allen, No. 11-cr-165, in U.S. District Court for the Eastern District of Virginia.
(Reporting by James Vicini and Jeremy Pelofsky, Editing by Lisa Von Ahn) Keywords: MORTGAGE/FRAUD HEARING (jim.vicini@thomsonreuters.com; 202-898-8396; Reuters Messaging: jim.vicini.reuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2011. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
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