|Published:||Nov 07, 2013 6:15 PM EST|
|Updated:||Nov 07, 2013 6:43 PM EST|
FORT MYERS, Fla. -- How would you like a luxury waterfront condo near Fort Myers Beach? It's a great place that comes with three bedrooms, resort-style amenities and beautiful views of the gulf. And you've already paid for it.
During the height of the financial crisis in the fall of 2008, Congress approved more than $700 billion of your money to bailout the banking industry. But one banker chose to take that money and improve his lifestyle instead of his bank.
Darryl Woods is the former Chairman and CFO of Mainstreet Bank in Ashland, Missouri. A small town in the middle of the state, not far from the University of Missouri.
In 2009 he applied for and received more than a million dollars of bailout money for his bank. On February 2, 2009 Woods used more than a third of the money to buy a the Fort Myers Condo. He may have signed the papers, but you paid for it.
Eight days later, in a letter to the Special Inspector General in Charge of TARP, Woods lied about the condo.
Woods didn't want to talk to our partners at KMOV in St. Louis when they arrived at his house. Instead he drove away. But he did plead guilty in Federal Court to lying about the condo.
"The idea was for financial stability and to get money to customers. Certainly not to have some officer of the bank buy a condo in Florida, that seems pretty clear to me," said Cheryl Block, a law professor at Washington University in St. Louis.
Block, who is writing a book on bailouts, says there isn't enough regulation over the banking industry and the bailout specifically.
"They reduced the amount of staff. So they don't have very many people to investigate and stay on top of this sort of thing," Block said.
Woods is still awaiting sentencing. The maximum penalty is a year in jail, a fine of a hundred thousand dollars and restitution.
He sold the condo this past February for $408,000.