Feds: Bank chairman used bailout money to buy luxury condo

[icymist]

Source: NBC News

A bank chairman from Missouri pleaded guilty on Tuesday to lying about how he used bailout money given to banks during the 2008 economic crisis. Rather than using the federal funds to stabilize his small bank, court records say, the chairman spent about a third of the money on an oceanfront condo in Florida.

Darryl Layne Woods, 48, of Columbia, Mo., could be sentenced up to a year in prison and may also have to pay a $100,000 fine. Lying to federal officials about how the money was spent is a misdemeanor crime.

Court records do not say whether Woods will be charged with misusing the money, which came from the Troubled Asset Relief Program, or TARP.

Read more: http://www.nbcnews.com/business/feds-bank-chairman-used-bailout-money-buy-luxury-condo-8C11017155

[Demeter]

1. I'm sure he's not the only one

[silvershadow]

13. Good. Maybe the others will be caught as well. I suggest other charges would be appropriate also.

nt

[PSPS]

2. Steal $400K, pay a $100K fine. So, children, crime does, indeed, pay.

[wordpix]

4. $100K is for lying to fed officials, article says he hasn't been charged w/ actual theft yet

I'm sure there will be more of a fine if he's found guilty for that

[Iwillnevergiveup]

5. MAY only have to pay

a $100,000 fine. Definitely he's not the only one. Double

[bhikkhu]

8. The bailout money was short-term zero interest loans to troubled banks

so it would have been paid back years ago. Whether he actually stole any money or not from the bank isn't mentioned in the article, so I would assume he just shuffled the papers in a way to finance himself a big house (probably at a huge discount, considering the times), with no interest. That might not sound too bad, but for a banker its pretty much high crime.

[arcane1]

3. "Court records do not say whether Woods will be charged with misusing the money"

In other words: the crime wasn't spending the money in this way, the crime was to lie about it.

TARP!

[Deny and Shred]

6. He didn't get the memo

Don't spend the TARP funds directly for personal use. Once the TARP funds have solidified the bank's financial position, the bank can then pay you a bigger bonus later for a job well done because you were at the helm when the financial position was solidified.

Then you can have your condo no questions asked.

[truedelphi]

7. If D L Woods was higher up in the banking food chain,

He'd have remained a free man.

Goldman Sachs used its Bailout Monies to buy an entire nature preserve in Patagonia. (South America.)

So I am sure for anyone who has a forest ranger Bachelor of Science under their belt, and doesn't mind a long commute, GS can even insist it helped our nation's employment situation.

[Supersedeas]

21. as it is less than 1 yr with parole--possession of small amounts of pot can get you worse

even the jailhouse has bankers hours

[The Wizard]

9. The "Good Fellas"

knew better.

[broiles]

10. Sounds like he came out ahead.

[OldRedneck]

11. Remember . . .

Does anyone here remember back in 2008 when public school teachers, firefighters, cops, and other public employees destroyed the housing market, wrecked the US economy, brought us to the brink of massive bank failure . . . then accepted billions of $$$$ in bailouts, paid no taxes on the bailout money, and went on their merry way??

Funny.

I don't remember that either.

Someone help me out here.

[warrant46]

15. Move along nothing to see here

</sarcasm>

[BlueStreak]

12. Is this the first bankster to go to prison from the bailout scandal?

Even though he is a tiny catch, I guess we should celebrate that the Justice dept has at least prosecuted one bankster.

[Nihil]

16. Not yet.

From the OP:
> ... could be sentenced up to a year in prison and may also have to pay a $100,000 fine.

He could also get off with a teensy-weensy slap on the wrist (like all of the other bankers who have
faced "justice" so far).

[BlueStreak]

17. If he smoked some dope at that illegal condo

then he would go to prison

[blkmusclmachine]

14. Savvy!

[kelliekat44]

18. I think if we are a little more patient we may see the DOJ use stuff like this to prosecute bankster

folks. The DOJ has to be sure when they bring a case than can prove it and get a sentence with the information they have. You can't jail a sleazeball without proving a crime.

[Demeter]

19. I'm 58. Just how patient do I have to be?

Do I leave it in my will to my children, who will never be able to afford children of their own, thanks to bastards like this one?

[LuckyLib]

20. He's small potatoes. And colossally dumb. Wait til we see what the big boys did with their money.

I mean, OUR money.

[Blandocyte]

22. Meanwhile, conservative radio whips up outrage over food stamp

recipients being allowed to buy junk food with their SNAP benefits.