There were hundreds of convictions for misusing TARP money given as bailout after the 2008 financial crisis.
The US government set up the Troubled Asset Relief Program (TARP) in October 2008 to buy toxic assets from financial institutions – initially injecting $700 billion into the market.
But within a few years, some analysts had started to raise concerns that the TARP money wasn’t being used for its intended purposes. The office of the Special Inspector General for the Troubled Asset Relief Program (SIGTARP) began looking at alleged misuse of funds.
A somewhat dated summary (from the 2017 article previously linked):
American SIGTARP investigations have resulted in:
- 402 individuals facing criminal charges, including 97 bankers charged with fraud. Wall Street traders were also charged.
- 324 people being convicted, of whom 222 were sentenced to prison.
What I want to know is if these were all small cases adding up to a big pile of if there were some "stars" among them. So, what was the biggest of these cases, in terms of financial damage? And if it's know, how much of the total damage was caused in big cases, i.e. how spread out was the damage?
N.B. I did find one case where a bank CEO just bought a property (perhaps for himself) with the TARP money:
Darryl Layne Woods, the former CEO of a Missouri bank, admitted in court yesterday to using financial crisis bailout funds to purchase a luxury waterfront condo in Florida, Dealbook's Peter Lattman reports. In November 2008, Woods, 48, who was the head of Mainstreet Bank and the bank's holding company Calvert Financial Corporation, applied for TARP money on behalf of his bank, a press release states.
In January 2009, his bank received $1,037,000. A month later, he used $381,487 of it to buy a place in Fort Myers, Florida.
He pleaded guilty to misleading federal investigators about how he used the TARP money.
While in this case the misuse went to the top of the bank, it's not necessarily the biggest case (financially) because the bank was small.