Tuesday, March 16, 2010

Banking fraud and TARP

I'll bet some of you remember commenting on this blog about the criminal activity surrounding the TARP program last year. The Troubled Asset Relief Program was designed to stop the banks and others from going under. Many of you had written about who and why the money was given and today we learn that the first criminal complaint was issued by US District Court in Manhattan. Charles Antonucci of Fishkill NY is accused of using false information to get 11.3 million in TARP funds. His bank was taken over last week by the FDIC and reopened the next day as a new financial institution.

Look for a dozen or so of these crooks to be charged and convicted this year. Also, we may soon learn who exactly was the central figure in the financial melt down of 2008.

7 Comments:

At March 17, 2010 at 11:21 AM , Blogger Harry said...

Seems that the banking and insurance industries attracts more than its share of theives. I have to say that I am disappointed in the Obama administration for not having safeguards in place to prevent this type of fraud, and for not catching this guy at it much sooner. I mean, how many banks actually got TARP money? And how many people are working in the program overseeing the money? Say 500 institutions got money. And say conservatively there are 50 people overseeing this program as far as compliance. So that means each of them only have to watch 10 companies that got money. And it took them a year to catch this guy? I want to hear more on this story Jim

 
At March 17, 2010 at 11:29 AM , Blogger Fred J. said...

I heard that CountryWide Mortgage was a huge player in these bad loans and credit defaults, and that the guys who ran that business now are running another one that buys these foreclosed properties for pennies on the dollar. I can not find anything on line, but then I am not exactly a techie when it comes to searching the net. But if there is even a sliver of truth in these rumors, then seems like they designed a pretty good Ponzi scheme for themselves, with the federal bailout program as the funder of their scheme, and us poor slob taxpayers as the ones giving the federal bailout program their funds to invest with these guys. Anyone know how we can find out if this is true?

 
At March 17, 2010 at 1:26 PM , Blogger Anderson said...

Fraud seems to run rampant among these people who take government bail out money. Lets see, they run their businesses so poorly that they need the government to bail them out. Why would we ever see that as a sign that they are a poor investment potential? Come on people, you can not be surprised that this TARP program is an easy target for savy con men?

 
At March 17, 2010 at 3:13 PM , Blogger Old soldier said...

I have heard that rumor too Fred. Would like to know if there is any truth to it. Jim, any insite?

 
At March 17, 2010 at 3:17 PM , Blogger Joker said...

You said all along there would be fraud involved, and as much as I hate to admit it, seems you were right again. But who is at fault here? Why isn’t there a better system for making sure this does not happen with tax payers money? Wasn’t there some sort of oversight committee set up by the Obama administration to prevent this exact thing from happening? Where did the system fail is what Iwould like to know. You can be sure if there is one person scaming the system, then there are a lot of people doing it, so this is not an isolated incident.

 
At March 17, 2010 at 4:06 PM , Blogger Friend said...

Obama seems to be getting caught in the same trap as his predecessor, Bush. Who would have thought that was possible?

 
At March 17, 2010 at 5:18 PM , Blogger Worried 01701 said...

Lets hope you are right that this is the first of many indictments. Someone or some group caused this crises whether intentionally or through their own stupidity, either way they should be held responsible, not give astronomical bonuses for what they did.

 

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