August 28, 2013
Always suspected that the whole TARP bailout effort of the banks was a giant boondoggle to take your taxpayer money and give it to wealthy bankers for their own private stash? Well, in at least one case, that’s exactly what apparently happened. The feds announced that a banker, Darryl Layne Woods, who was the head of Mainstreet Bank in Ashland, Missouri, applied for TARP funds and received over $1 million from the program back in January of 2009. On February 2nd of 2009, he used $381,487 of that same money and bought himself a luxury condo in Florida. A mere eight days later, Woods had to explain to the Special Investigator General in charge of monitoring the program how it was being spent, and conveniently left out the condo in Florida. No surprise there. Incredibly, from the DOJ’s announcement, it seems that they’re more focused on him lying about the condo than buying the condo in the first place:
Woods failed to disclose in his letter that a significant portion of TARP funds had been used to acquire the condominium. Failure to disclose the purchase of the condominium was a material misrepresentation of facts relating to the true use of TARP funds.
Of course, it still took another four years before this guilty plea. Woods will also face some jail time, have to repay the money, plus pay a fine of up to $100,000, and is barred from working in banking or finance. Of course, this was just small fry. $1 million to a tiny local bank, with about 40% of it being abused. Just imagine what some of the big banks did with the many billions they got. It’s just they’re a bit more sophisticated in how they went about spending the money.