Bank exec busted for bailout fraudAugust 27, 2013: 3:53 PM ET
Turns out that TARP funds weren't meant to finance luxury vacation homes.
FORTUNE -- No matter how one might feel about the 2009 bank bailouts, there is one thing I think we can all agree on: Bank executives shouldn't have used TARP money to buy themselves luxury vacation condos.
But that's exactly what Missouri banker Darryl Layne Woods has admitted to having done.
Woods today plead guilty in federal court to having lied to investigators over his use of $381,000 in bailout funds to purchase a waterfront condo in Fort Myers, Fla.
The money was part of nearly $1.04 million provided by the U.S. Treasury Department to Calvert Financial, the holding company for Ashland, Mo.-based Mainstreet Bank. Woods was chairman, president and majority shareholder of Calvert, plus chairman and chief financial officer of Mainstreet Bank.
TARP recipients were required to disclose how the bailout funds were used, but it seems that Woods apparently left out the part about his waterfront hideaway. Probably because it was an illegal misuse of funds. Not surprisingly, he misled federal investigators about the situation when later questioned (until copping to everything today).
He faces up to one year in prison without parole, plus a fine of up to $100,000 and an order of restitution. He also is banned from the financial services business for life.
But leave it to Twitter to find someone with an alternative theory of the crime...