Banker Blew $381K in Bailout Cash on Posh Condo
Pleads guilty, will face a year in prison—at most
By Ruth Brown, Newser Staff | Suggested by Ghille
Posted Aug 28, 2013 10:02 AM CDT
   (Shutterstock)

(Newser) – Your daily blood boil: A former bank executive has pleaded guilty to using bailout money to buy a waterfront condo. In 2009, Darryl Layne Woods bought the luxury digs with some $381,000 of the $1 million given to Mainstreet Bank in Ashland, Mo., where he was the chairman at the time, the New York Times reports. "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," says a US attorney. His punishment? At most, a year in federal prison and a $100,000 fine, reports the Huffington Post.

According to prosecutors, Woods also tried to cover his crime up. Per the Times, when a TARP investigator asked him to account for how the money had been spent, he sent a letter saying: "We are a small central Missouri community bank and while I would like to be able to provide you with very specific and quantitative responses we are currently operating under the assumption that the worst scenario could occur and the TARP proceeds will provide vitally needed infusions to a bleeding patient." Woods has not yet received his sentence, but at the very least, he will be banned from working in the banking industry again.

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Showing 3 of 73 comments
Bundy714
Aug 30, 2013 2:32 AM CDT
There is more outrage when someone with food stamps buys steak, than when a banker takes $381,000 tax dollars to build himself another house.
clmsman
Aug 29, 2013 9:33 AM CDT
Public execution should be the punishment! A broad sword separating his head from his body as a warning to all others this is your fate. Saudi Arabia made drug trafficking a capital crime with all caught and convicted subject to public execution their problem dropped by 40% in one month after a few heads rolled.
HMD-SMD-ITY
Aug 28, 2013 6:42 PM CDT
I bet he picked Florida because of their forfeiture laws. Florida does not allow forfeitures from civil proceedings. But he didn't know his home cannot be protected from federal crime forfeiture even in Florida. In fact, if you go to the federal auction web page, there are dozens of homes seized in drug deals and crimes like his. A lot of them are very nice ocean side properties. Its a good way to pick up a property at auction pricing.