Bailout Cop Uncovers 20 TARP Crimes: Fraud, Price-Fixing, Kickback Schemes and More!

April 21, 2009

(ChattahBox)—Bailout cop, Inspector General Neil Barofsky, released a blistering 250-page report today, indicating he is pursuing at least 20 TARP criminal investigations for possible fraud, insider trading, tax violations, collusion, kick-back schemes and even, money laundering. The report also indicated it would be conducting at least a dozen financial audits of troubled banks and other institutions receiving bailout funds.

Barofsky was appointed by former President Bush to oversee how the government’s money was spent in the bailout program. Barofsky is a former New York Assistant U.S. Attorney, known for his toughness and willingness to prosecute white-collar securities-fraud criminals. He made headlines as a prosecutor, when he made former Refco chairman Phillip Bennett cry on the stand in an accounting-fraud case against company executives last year.

Barofsky says his report was released to uphold transparency, inform the public and government officials to potential TARP fraud risks and make appropriate recommendations. He made clear he is not on a witch hunt and that institutions and individuals who play by the rules have nothing to fear from his team of 35 investigators, expected to swell to 150 when they move to new offices next to Treasury staffers.

Barofsky says the massive size and complexity of the $750 billion bailout program leaves it vulnerable to scammers to run rampant with various fraud schemes, bilking the government and taxpayers of billions of dollars.

Barofsky reserved his strongest criticism for the Term Asset-Backed Securities Loan Facility or TALF, a program to buy up toxic securities from banks and bundles of bad mortgages and loans, saying it’s the most vulnerable to fraud, leaving all the risk to the taxpayers with none to the financial institutions.

Barofsky’s report called for completely shutting down the TALF program before it becomes committed to making purchases. The report indicates the bundled mortgage transactions are of particular concern, ripe for massive fraud and collusion by buyers to manipulate prices and extract kickbacks.

The Treasury Department’s bailout chief, Neel Kashkari, is considering Barofsky’s recommendations.

Source

1 posted on 04/21/2009 9:52:41 PM PDT by rvoitier

How much are we paying for these investigations?

Will we dock the companies found guilty with the money we paid them?

Wouldn’t that be like docking ourselves?

Are we completely insane?

2 posted on 04/21/2009 9:55:35 PM PDT by Lorianne

How much are we paying for these investigations?

Will we dock the companies found guilty with the money we paid them?

Wouldn’t that be like docking ourselves?

Are we completely insane?

3 posted on 04/21/2009 9:57:03 PM PDT by Lorianne

Let’s see. Stir the pot with this report, then hold the threat of investigations, audits, and prosecutions over the heads of everyone concerned. Isn’t that the “Chicago way”?

4 posted on 04/21/2009 9:57:23 PM PDT by the_Watchman

O say it isn't so. Corruption associated with the bailout ? No $hit ? Really ? Darn. My surprise-o-meter levels are soaring as I try to comprehend how in the world that happened. ... Whatever.

5 posted on 04/21/2009 10:13:17 PM PDT by farlander (Sic Semper Tyrannis)

I thought mean ole Joe was overseeing this, or was it TARP...”don’t mess with Joe” and all that crap.....is Joe in hiding??

6 posted on 04/21/2009 10:33:29 PM PDT by tina07 (In loving memory of my father,WWII Vet. CBI 10/16/42-12/17/45, d. 11/1/85 -Happy B'day Daddy 2/20/23)

After wagging his finger so, Obama would have been wise to have a plan in case someone cheats.

7 posted on 04/21/2009 11:10:31 PM PDT by HiTech RedNeck (Beat a better path, and the world will build a mousetrap at your door.)

O say it isn't so. Corruption associated with the bailout ? No $hit ? Really ? Darn. My surprise-o-meter levels are soaring as I try to comprehend how in the world that happened. ... Whatever.

LOL! You took my post! LOL!

8 posted on 04/22/2009 1:18:40 AM PDT by Talisker (When you find a turtle on top of a fence post, you can be damn sure it didn't get there on it's own.)

"he is pursuing at least 20 TARP criminal investigations for possible fraud, insider trading, tax violations, collusion, kick-back schemes and even, money laundering"

Obama will put a stop to that. We can't have investigations of crooked Democrats, now, can we?

Criminals protect their own.

9 posted on 04/22/2009 1:24:58 AM PDT by ChicagahAl (Don't blame me. I voted for Sarah.)

"Our stupid slaves think the law applies to US. Up their taxes."

10 posted on 04/22/2009 2:30:59 AM PDT by Diogenesis

Wonder how many members of our esteemed Congress are on the list?

Diane Feinstein (Blum) and her pig of a husband are already face deep in the trough, who else?

11 posted on 04/22/2009 3:52:56 AM PDT by Jimmy Valentine (DemocRATS - when they speak, they lie; when they are silent, they are stealing the American Dream)

Government workers job and 0bammy’s job is to shovel money out the door to the tax eaters and the Democrat constituencies. Keeping recipients honest? They could give a crap

12 posted on 04/22/2009 8:11:50 AM PDT by dennisw (Your action becomes your habit. Your habit becomes your character, that becomes your destiny)

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