The Stunning Level of TARP Waste, Fraud & Abuse

Real Clear Markets ^ | 4/23/2009 | Investor's Business Daily

[SeekAndFind]

Fraud: The government's $750 billion bank bailout was passed six months ago amid great hype. So far, a new government report claims, the program is rife with inefficiency and fraud. Surprised? You shouldn't be.

In what Special Inspector General Neil Barofsky calls only a "first wave" of investigations, some 20 criminal probes have been opened for possible securities fraud, tax-law violations and insider trading, among other serious financial crimes.

[the invisib1e hand]

If there was a "Surprise" category on FR, this wouldn't qualify.

If there were "I told you so," or "Duh!", well, that might be more appropriate.

[sauropod]

home

[org.whodat]

Already, TARP has become a money-losing boondoggle for Congress. Elizabeth Warren, who heads the Congressional Oversight Panel for TARP, estimates that the government has already lost $104.2 billion on the TARP program.

It did so, basically, by paying $1 for assets worth only 66 cents.

Now where is that poster that told me the tax payer were making money the other day??

[Vaduz]

This part won’t get much msm air timr
Shortly after Feinstein put forward her legislation, CB Richard Ellis Group, the commercial real estate firm, won a major FDIC contract. CB Richard Ellis’ chairman of the board is Feinstein’s husband, Richard Blum.

[Vaduz]

e

[GeorgiaDawg32]

but, but, but..this is run by the government..they PROMISED everything would be ok..

[lewislynn]

Interesting. What better news could there be for Obama socialists to fully nationalize the banking system?

Coincidence? I don't think so.

[Mojave]

It did so, basically, by paying $1 for assets worth only 66 cents.

Is that all? I figured it would be worse than that.

[JasonC]

Notice how the headline "fraud" becomes the body "inefficiency", and them fades into "potenial abuse", and ends without a single concrete case proven or even alleged? It is a contentless vacuous smear.

[dhm914]

any level of trap is stunning, it stings me that this unconstitutional thing passed for any amount. I am stunged. damn republicans that voted for this may rot in haytes. we need an all out drive to kick them out of the party. in fact the whole GOP needs a house cleaning. know one is fighting obama and his spending. time to cull the ranks, and fight this crap.

[JasonC]

There is nothing, it is all lies and smears. "worth 66 cents", says who? Worth to whom? Has anything actually been lost? No. If you coulda bought a bigger house in 1972, is it waste fraud or abuse that you waited and paid more later? It is just crap.

[Mashood]

Already, TARP has become a money-losing boondoggle for Congress. Elizabeth Warren, who heads the Congressional Oversight Panel for TARP, estimates that the government has already lost $104.2 billion on the TARP program.

Its............................... gone!

[phillyfanatic]

Pubs should call for an immediate investigation of Dem Tarp waste and how , where, why the money was spent. It is time for the Pubs to stand up for the investor class, the tax payer and demand that Congress find out where all this money went and if, if Congressional reps made use of it for their own benefit.

[wac3rd]

How are you going to treat found money?

[OneWingedShark]

>some 20 criminal probes have been opened for possible securities fraud, tax-law violations and insider trading, among other serious financial crimes.

I am surprised. Surprised that ONLY 20 ‘probes’ have been opened.

[2harddrive]

What else do you expect from TARP (Taxpayer Ass Rape Program) !!???

[Liz]

The Smiling Messiah.

"As long as I keep on smiling, I can gull peon
taxpayers into thinking all their money is safe."

REFERENCE CBS-News ran an in-depth segment on this, this past Monday night---reporting that official thievery could amount to hundreds of billions of the trillion dollar gov't bailouts. CBS based the numbers on the built-in percentage of known fraud in gov't programs.

Reports of additional bailout negligence and mismanagement---that could amount to official thievery of hundreds of billions of dollars----are rocking the Obama admin as lack of oversight has produced multiple TARP messes, leaving Democrats running for cover.

New revelations include excessive executive bonuses at F/Mae and F/Mac, companies at the very heart of the financial meltdown, and Democrats acknowledging that 13 of the financial firms receiving taxpayer bailouts owe more than $220M in unpaid back federal taxes.

I hope the thieves paid all the taxes due (stolen money is taxable)

[Liz]

THE MODUS OPERANDI?

L/E needs to determine whether TARP recipients colluded to move billions through lawyers' trust accounts —without having to divulge the source of the money. TARP recipients might have been concerned about potential criminal liability------by laundering the proceeds of their criminal activity into lawyers' accounts.

Authorities need to determine the extent to which TARP recipients colluded in schemes that may have included misusing government reserve accounts, concealing losses, inflating asset values and improperly accounting for computer transactions, and the extent to which TARP recipients could be charged with illegally sending monies out of the country to offshore money-laundering havens.

Prosecutors should explore the extent to which TARP recipients directed the preparation of phony receipts for illegal property transactions and who among the co-conspirators might be charged with aiding and abetting illegal money-transmittals, and with falsifying official records.

Taxpayers demand to know the extent to which gov't official and individuals directly or indirectly, singly or in concert, with computers, computer technicians, by use of the means and instrumentalities of interstate commerce and by use of the mails, electronics, or a facility of national banks, investment vehicles, and/or a national securities exchange, knowingly or recklessly, in connection with facilitating government fraud:

(1) employed devices, schemes and artifices to defraud, (2) made untrue statements of material fact and omitted to state and federal bank authorities material facts necessary in order to make statements made, in light of the circumstances under which they were made, not misleading, and (3) engaged in acts, practices and courses of business which operated as a fraud and deceit upon bank investors, shareholders, bank patrons, and other persons.

Authorities should investigate TARP recipients' Postal Service mailings, wire transfers, computer transfers, electronic submissions, unregulated money transfers, and all bank transfers connected to these individuals and government agencies.

TARP recipients fraud activities might have involved using checks passed from one account to another in multiple conspiracies to launder monies. The stratagem could have been international in its scope to those with worldwide connections.

Authorities need to determine the extent to which collusive schemes may have included misusing reserve bank accounts, concealing transfers, inflating asset values and improperly accounting for transactions.

Authorities need to determine the extent to which TARP recipients are open to prosecution, and the extent to which fraudulent activities caused financial harm to US taxpayers, and other persons.

TARP recipients might have fraudulently accounted for excess benefit transactions and may have improperly accounted for bank transfers that might have evaded the IRS, SEC and FEC.

TARP recipients might have facilitated government fraud by integrating:

1. Exclusive control over TARP banking functions.

2. Requiring only one signature on TARP bank checks.

3. Utilizing pre-signed TARP bank checks.

4. Using secret bank accounts to hide the actual financial position of TARP accounts.

5. Assigning bank deposit and account reconciliation functions to one person.

6. Conspiring to hide oversight of expenses and supporting vouchers from public view.

7. Having no outside auditor to review TARP bank statements.

8. Cashing unusually large amounts of TARP checks.

9. Overriding official government deposit and withdrawal control systems.

It has not yet been determined the extent to which TARP recipients engaged in fraudulent banking practices, and whether co-conspirators directly or indirectly, singly, or in concert, with computers, computer technicians, interconnected software, by use of the means and instrumentalities of interstate commerce and by use of the mails, electronics, or a facility of national banks, investment vehicles, and/or a national securities exchange, or other investment vehicles, knowingly or recklessly, facilitated government fraud.

[JudgemAll]

After that watch the “runaway brides” of Congress 60s style blame the families, capitalists and Americas for wasting the money and the world.

But this ho is not fooling the islamists and socialists it beds with