Your bailout money bought this banker a condo

Darryl Lane Woods has pleaded guilty to spending $381,000 in TARP funds on a waterfront spot in Florida.

By Jason Notte Aug 29, 2013 8:11AM
File photo of Fort Myers Beach (© Derek Latta/E+/Getty Images)Don't worry, U.S. taxpayers: Darryl Lane Woods was just getting around to thanking you for the luxury condominium he bought in 2009. The Justice Department just cut him off first.


Woods, the chairman of Mainstreet Bank in Columbia, Mo., pleaded guilty on Monday to using bailout funds from the Troubled Asset Relief Program to purchase the condominium, according to a press release issued by U.S. Attorney Tammy Dickinson.


In January 2009, his bank received a cash infusion of more than $1 million from the federal government. Less than a month later, Woods turned around and spent more than $381,000 of those funds on a seaside condo in Ft. Myers, Fla.


"At a time when many other Americans were losing their homes, he was siphoning off public funds to buy a luxury vacation condo in Florida," Dickinson said.


TARP gave banks and other financial institutions $600 billion to stabilize themselves in the wake of the financial crisis. Taxpayers are still short roughly $59 billion as banks, lenders and other companies slowly pay back what they owe.


In Woods' case, he flat-out lied to regulators about how the money was used, according to Christy Romero, a special inspector general for TARP. When the agency told Mainstreet Bank to disclose how it spent TARP funds, Romero said, the "bank Chairman and CFO Woods failed to tell the truth."


Under the terms of Woods' plea agreement, he's required to leave the banking industry and may not serve as an officer, director, employee or affiliated party of any financial institution or agency. The government, in turn, agreed not to bring any charges against his wife, Jackie Woods (Ralston), for any criminal offenses the government uncovered during the investigation.


Under federal statutes, Woods faces up to a year in federal prison without parole, plus a fine of up to $100,000 and an order of restitution. He'll be sentenced later, though he'll have spent more time at his lovely little taxpayer-funded hideaway in Ft. Myers than he ever will in prison.


Consider it a second-home loan: You know, like the kind that's infinitely tougher for the average taxpayer to get, thanks to folks like Woods.


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83Comments
Aug 29, 2013 8:55AM
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so basically he walks away with a slap on the wrist.........wonderful! 

 

he takes $381,000.  goes to jail for 1 year - out in say 6 months on parole.  pledges to never do it again.  and 'restitution" means he sells the condo for a profit and gives back the $381,000? 

 

meanwhile......what ELSE has he done to give him confidence to pull THIS stunt?  and what makes anyone believe he will not weasel back into this "line of work' again?

Aug 29, 2013 10:55AM
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He is a small fish and much worse has and is likely going on. This is just a guise to make us think the government is doing its job and looking out for taxpayers. Hahahaha.

Besides he basically is getting a slap on the wrist, so what is even the point. He will come out better than most of us.

I think 10yrs at least would be more sufficient, plus the fine, plus paying back what he took, on top of forfeiting the property all together.

Make the punishment meaningful and enforce the laws and you would see less of this.

 

I think its time

Aug 29, 2013 10:57AM
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So he gets convicted for stealing $381,000 while the BIG Wall Street "bankers" steal

hundreds of billions of dollars and the only punishment they get is a larger bonus.

Aug 29, 2013 10:55AM
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he took less than a million...corzine took billions...and will never go to trial..all about connections
Aug 29, 2013 11:55AM
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Thats just great, I know of a person who was homeless due to death in family and robed a gas station with a screwdriver for $200.00 and he got tens years in a non luxury prison.  This is what's wrong with this country and can't seem to stop.  All our politicians are lawyers,  who make the laws so they and their smart(greedy crooks) friends can get thru the loop holes and not pay the price. While the little guy goes to prison and his life is ruined.  Obama is the same as the rest, **** and lies, smooth it over and move on.  The middle class really needs to leave this country and go some where else.  Because this country is not going to change, that guy should go to jail for life, with a chance of parole after 25 years so his life is ruined.  To blatantly take that much money out of tarp money meant to help a bunch of loser bankers anyway from their own mismanagement of funds should have a penalty like speeding in a work zone, TRIPLE.    The democrats and the republicans need to go, they have become useless!!!
Aug 29, 2013 10:49AM
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think about it! if this small Bank did this , what about the large Banks , I wonder what kind of **** they have pulled...
Aug 29, 2013 11:23AM
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Corporate America at it's finest.  Maybe if we started making these offenses a class a or b felony with a minimum 25 years in jail that might stop it.
Aug 29, 2013 10:20AM
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I would think a guy with that kind of position would be better at covering his tracks. Other people in the industry did it and refered to it as a bonus. Sounds like he was slipping.

Aug 29, 2013 11:23AM
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What the hell do you expect out of a banker?  The only difference to other bankers is this dumb sucker got caught.
Aug 29, 2013 11:53AM
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"I would like to spit some Beech Nut in that dudes eye"   $380,000 dollars = 1 year in jail?  And when the Government sells this home, where will the money go?   

Aug 29, 2013 11:13AM
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They ought to make this clown Bernie Madoff's bunk-mate, for as long as 'ol Bernie is locked up for.

 

But, I don't think it should stop there. He should never be allowed to conduct business or reproduce for the rest of his life. That might send a message to the rest of these tailored suit criminals who thrive in banking.

Aug 29, 2013 12:08PM
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Funny how The government has to "appear" like they are doing something about it... I mean even this "bust" is a complete joke!!! He does less time than someone would if they owed 381k in back taxes for money that they actually earned working legitimately!!! He'll probably serve 3-4 months TOPS and then he can sell his condo for 500-600k pay the 381k back plus the 100k fine and be UP 20-100K by the time its all said and done.. basically he is going to make money for the time spent in jail, SO WHAT IS THE LESSON HE IS SUPPOSED TO LEARN!??
Aug 29, 2013 11:55AM
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What difference does it make now?


- Hillary Clinton

Aug 29, 2013 12:01PM
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Bury him in prison for 20 years, make it a deterrent. If you think he is the only one that is doing this sort of thing your DEAD WRONG! Obama is doing worse to us than this guy! Get out and vote, clean them all out of office, even the long term folks we need new and trusted people. Weiner is not a good choice either!!!

Reid, Pelosi, Waters, Boxer, several others, have got to go!!

Aug 29, 2013 12:29PM
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If our "justice" system would start punishing this kind of criminal activity in a serious way, then you would see a great deal less of it. No one seems to fear the law, whether it be bankers or gangstas.
Aug 29, 2013 11:36AM
Aug 29, 2013 1:14PM
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People like to blame banks, corporations, and the government but too many of us forget that all these organizations are corrupted by the individuals that fill their ranks. Americans don't want to admit there is a problem with Americans.

Aug 29, 2013 12:44PM
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"TARP gave banks... " Wrong. TARP lent banks money that has mostly been paid back with much interest. There are crooks everywhere. Many of them receive SS, welfare, unemployment and disability. And then there are those in Washington.
Aug 29, 2013 12:54PM
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After reading the comment here I understand why this country is going down the tubes. Most of you have no idea what you are talking about.

Think before you answer.

Who did he steal the money from?

Aug 29, 2013 3:32PM
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the $310,000 dollars for the condo doesn't even fund one day of Obama's taxpayer funded Martha's Vineyard boondoggle.
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