A federal appeals court on Wednesday upheld the conviction of former Taylor, Bean & Whitaker Mortgage Corp Chairman Lee Farkas, who was accused of masterminding a $2.9-billion bank fraud, one of the largest in U.S. history.

The 4th U.S. Circuit Court of Appeals in Richmond, Virginia rejected Farkas' claims that the trial judge had violated his Fifth Amendment rights by instructing the jury improperly, as denying him his Sixth Amendment right to counsel. It also upheld a $38.5 million forfeiture order...