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Bank CEO Admits To Using Bailout Money To Buy A Luxury Condo In Florida

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Bank CEO Admits To Using Bailout Money To Buy A Luxury Condo In Florida

Darryl Layne Woods, 48, of Columbia, waived his right to a grand jury and pleaded guilty before U.S. Magistrate Judge Matt J. Whitworth to a federal information that charges him with making a false writing.

Woods was the chairman and chief financial officer of Mainstreet Bank in Ashland, Mo. He was also the chairman, president and majority shareholder of Calvert Financial Corporation, the bank holding company for Mainstreet Bank.

“The purpose of TARP is to promote financial stability and lending in a time of national economic crisis, not to bankroll the purchase of luxury vacation properties for bank executives,” said Christy Romero, Special Inspector General for TARP (SIGTARP). “When SIGTARP required Mainstreet Bank to disclose how it spent TARP funds, bank Chairman and CFO Woods failed to tell the truth that within days of receiving the TARP funds, the bank spent more than a third of the funds purchasing a waterfront condo in Florida for his and other executives’ use. SIGTARP and our law enforcement partners will hold accountable and bring to justice those guilty of crimes related to TARP.”

In November 2008, Calvert Financial applied to receive funds through the Troubled Asset Relief Program (TARP). TARP was created through the Emergency Economic Stabilization Act of 2008. The purpose of TARP was to provide capital to financial institutions to enable them to build their capital base and to increase the flow of financing to businesses and individuals. The U.S. Department of Treasury approved the request for TARP funds, and in January 2009 Calvert Financial received $1,037,000 through the TARP Capital Purchase Program.

Woods admitted today that he used $381,487 of the TARP funds to purchase the luxury condominium on Feb. 2, 2009.

The Special Inspector General for the Troubled Asset Relief Program (SIGTARP) was required to supervise, audit and investigate institutions that received TARP funds. SIGTARP sent letters to various financial institutions seeking specific information as to how TARP funds were used by the institutions. Woods responded to that inquiry in a letter dated Feb. 10, 2009.

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.

Under the terms of today’s plea agreement, Woods is required to desist from any further involvement in banking and may not serve as an officer, director, employee or affiliated party of any financial institution or agency. The government agrees not to bring any charges against his wife, Jackie Woods (Ralston), for any criminal offenses arising from the facts known by the government as a result of this investigation.

Under federal statutes, Woods is subject to a sentence of up to one year in federal prison without parole, plus a fine up to $100,000 and an order of restitution. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.

This case is being prosecuted by Assistant U.S. Attorney Jim Lynn. It was investigated by the FBI, the Special Inspector General for the Troubled Asset Relief Program (SIGTARP) and the Federal Reserve Board – Office of Inspector General.

Read more: http://www.businessinsider.com/bank-ceo-buys-condo-with-tarp-money-2013-8#ixzz2dCa16ceN

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Is anyone really shocked? Journalists have literal days worth of footager including some of the wealthiest bankers in the US holding lavish million dollar parties and even footage of some of the CEO's of the most at fault banks from the 2008 crash using bailout money to purchase personal items including using said money to cover year end bonuses totalling in some cases $40 million and more.

What we here in Canada should be outraged out is Harper's insistance that he NEVER bailed out the banks nor gave them a dime






A quick read through some of these articles will show an astonishing truth. Most of this money will never be paid back to us taxpayers at all. Even more astonishing is how since this came to light Conservative branded media in the USA and Canada have written novels telling us everything from this never happened, to this is only a temporary loan to this (and I kid you not) is a Liberal scheme and a Liberal failsafe which was put in place by the Paul Martin Government and shouldn't be held against the Harper Government.

$114 billion just vanished, which goes hand in hand to the almost $15 billion that was just handed over to auto makers in southern ontario to save roughly 10,000 jobs in one of the largest voters bloqs in the country.

I for one am saddened and sickened by this and a petty part of me hopes the much talked about housing crisis happens before 2015 so we can pin it to this venal man and his spend happy party. (Kidding by the way I sincerely hope we never see a crash of that magnitude)

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Yes, really. The entire US financial sector was in a tailspin. If the bailout hadnt happened many more banks would have failed and the economic turnaround that did happen may not have. It amazes me that it was all within the last 5 years and hardly anybody seems to remember just how bad it was.

The bailout was part of the Emergency Economic Stabilization Act of 2008. Enacted Oct 3 2008. 5 year anniversary coming up in a few days. $700 billion dollars in mortgage guarantees, bank asset purchases, bailouts and of course Miami Condos for execs to hang out in.

Couple years later Banks across the US were, and still are, making huge profits, bank stock values went through the roof and the US Gov Treasury Department is realizing some nice gains on the bank assets they purchased (most asset purchases were in the form of non voting shares)

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