The Securities and Exchange Commission (SEC) late Wednesday filed civil charges against a former operations chief at the now defunct Colonial Bank, accusing her of playing a key role in $1.5 billion warehouse lending related scam.

The SEC said that Teresa A. Kelly, operations supervisor for Colonial "enabled the sale of fictitious and impaired mortgage loans and securities" to the bank by its largest warehouse customer — Taylor, Bean & Whitaker Mortgage — representing these assets as "high-quality, liquid assets."

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