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TARP fraud exposed
The TARP watchdog, Neil Barofsky, warned us a year ago that the $700 billion program was ripe for fraud: "History teaches us that an outlay of so much money in such a short period of time will inevitably draw those seeking to profit criminally." Well, he was right. The first criminal charges have been filed concerning abuse of TARP funds, and there are more cases on the way.
The charges were filed against the president of New York's Park Avenue Bank, which was shut down by regulators last week. From the Washington Post:
Investigators said (Charles Antonucci Sr.) tried to fraudulently obtain $11.3 million from the Treasury Department's Troubled Assets Relief Program by lying about the bank's capital levels in its November 2008 application for bailout funds. He told regulators that he had invested $6.5 million of his personal money to boost the bank's capital, the complaint said, even though the investment was made with the bank's own funds through a "series of deceptive, round-trip loan transactions" devised by Antonucci.
Barofsky isn't done sniffing out the TARP liars and cheats. Here's what he said on Fox News today:
CAVUTO: How do you know others aren't or weren't doing the same thing when it comes to TARP? That, what, $700 billion-plus that's been -- gone out.
BAROFSKY: Well, others are doing the same thing.
CAVUTO: So, you suspect there will be more cases like that?
BAROFSKY: There will be more cases, both against applicants and TARP recipients. That's what we were charged by Congress to do, and that's what we're doing, is uncovering those frauds.
Now, if we could just get some criminal charges filed concerning the events that led to the $700 billion bailout...
Oh, boy they caught a small fish. Now what about the T-rex's like Goldman Sachs, Citi, JP Morgan Chase, Bank America, private equity (aka LBOs) that received $13 trillion in guarantees, loans and gifts from government? Check out the data on Nomi Prins' website.
I represent numerous people being sued by banks for "deficiency judgments." the banks foreclose, sell the property at, e.g., a trustee's sale, then sue the borrower for the difference between the fair market value of the property and the unpaid mortgage. of course, TARP and other sources give banks the opportunity to be reimbursed for these alleged losses. I understand there are also tax breaks available for defaulted loans or related losses. i have even heard that Fannie Mae payms banks reimbursement for a portion of the losses "suffered" when property is being taken back, even tho the Banks are pursuing the borrower for the same loss. Yavapai County Arizona is a microcosm of the interplay of bank fraud, the banks accelerated take over of the entire real estate market and the role of the judiciary. Can anyone point me in the right direction to confirm what resources are available to the bank that would serve as "off-sets" to the alleged losses they have suffered through foreclosure, and for which they are now suing the defaulted borrower?? this appears to be double dipping, at best. the banks are certainly ignoring 12 CFR 34(C) & (E). WHAT SOURCES CAN I CONSULT TO PROVE THE BANKS ARE GETTING MORE THAN THEY DESERVE WHEN THEY FORECLOSE A LOAN???
