Banker Pleads Guilty To Using Bailout Money To Buy Himself A Luxury Condo

from the taxpayer-money dept

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.

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Companies: mainstreet bank

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Comments on “Banker Pleads Guilty To Using Bailout Money To Buy Himself A Luxury Condo”

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20 Comments
Ninja (profile) says:

Inside Job. Watch it.

The bailout was a gargantuan sized scam where the clowns are the taxpaying citizens and the winners are the bankers. It’s quite smart if you think about it for big banks.

1- Lobby the US Govt.
2- Put a representative of your sector into the Govt. Let’s say, controlling the agency/ministry/department responsible for the economic measures and directions. Also put someone from your sector into the Central Bank or something.
3- Use those positions to relax oversight and scrutiny on the financial market and in credit concession.
4- Sell rotten titles as if they were the best thing with the blessings of risk classification outfits partnered with you.
5- Insure those rotten titles.
6- Watch hell break loose into the economy.
7- Claim the insurances causing even more havoc.
8- Influence the Govt to bailout “the economy”.
9- ????
10- Profit. Get more cocaine, yachts and hookers.

theOtherDude says:

Wow

He could have just pushed the board to give him that money in a bonus, then purchased his condo perfectly legally. He would have had to pay income tax of course, but still. See this is why he is running a bank in nowhere Missouri, instead of working on wall street where they know how to steal without breaking the law.

Anonymous Coward says:

when you think of the harm that was done by the banks and those operating them, on to the ordinary person, this is disgusting! people lost everything from their job, their home to their family and arse holes like this not only uses public funds to buy a luxury home elsewhere, he doesn’t lose anything in the first place. had an ordinary person been guilty of a scam like this, the feds would have been on him like a rash. as stated in a previous comment, the feds managed to shift themselves over Snowden and Manning and even went to extortionate lengths to please the entertainment industries and Hollywood by screwing Dotcom. however, when it comes to sorting out crap like this, it takes forever. and bear in mind the outrageous fines and prison sentences that the bankers responsible for destroying so many lives have had levied against them! that’s right! fuck all!! ruin a family, nothing. ruin a company, nothing, ruin a country, nothing, practically ruin the world, nothing! get accused of stealing a movie or releasing information that embarrasses a government, the sentence cant be swift enough or stern enough! guess we all need to move over and start living in a make-believe world. at least it appears we would be protected!!!

RD says:

Re: Oooh, Mike goes Populist! Not yet calling for tax on stock trades...

“I’m pretty sure that Mike is finding hammering on NSA and various other criminals is bringing more traffic than trying to tear down copyright.”

Yeah, because hammering on the NSA is just about trivial and unimportant traffic-grab.

This is why you are a fucking douchebag.

Ben S (profile) says:

Part of the reason the DoJ isn’t concerned with the way these bankers uses these funds is they are going to have to pay the money back, with interest, eventually. Some of the banks are constantly paying interest back to the government as well, so this is a bit of a cash cow for them. Would you care if you “bailed” some one out with your money, while constantly having them pay you back interest over the course of several years, knowing eventually you’ll get back everything you spent and more, and the person you bailed out misused the money?

FM Hilton (profile) says:

The others got away with it

Yes, indeed. A small bank’s president gets nailed for appropriating all that money without disclosing what he was using it for.

I shudder to think of how many Wall St. corporations and financial institutions have houses in the Bahamas that have never been disclosed, bought with TARP funds.

Ooops. We won’t mention that.

Then Wall St. wonders why everyone hates them.

Everyone but the government regulators, who turn a blind eye to all of it.

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