The government’s plan to bail out U.S. banks through the Troubled Asset Relief Program back in 2008 may have stabilized the financial system, but it also had the unintended effect of exposing fraud within individual banks.
Christy Romero, the special inspector general for the Troubled Asset Relief Program (SIGTARP), announced the indictment of three Missouri businessmen Monday, accusing them of bank fraud against TARP-fund recipient, Excel Bank.
This is not the first time a small bank that received TARP funds has become the alleged victim of outsiders, and Romero’s group quickly jumped in to investigate.
According to SIGTARP, this is what they found: Three businessmen allegedly defrauded Excel Bank after receiving loans that were obtained through falsified documents.
The three men charged included William Glasgow, 72, of Town and Country, Mo.; James Crews, 56, of Wentzville, Mo.; and Michael Hilbert, 62, of St. Charles, Mo.
Glascow, who owned rental properties tied to his Glasgow Realty Business is accused of having two loans on his rentals that were the product of falsified documents.
His case is separate from that of James Crews and Michael Hilbert – both of whom were indicted for allegedly submitting numerous construction draw requests in escrow funds that were set aside for property improvements. The two men did business through real estate entities such as Crews Corp., Hillcrew Properties, Merz Properties, Eagle Group and Marathon RE.
"Glasgow, Crews, and Hilbert are charged with defrauding TARP recipient Excel Bank," said SIGTARP inspector Romero.
"When Excel Bank failed, taxpayers lost their entire $4 million TARP investment in the bank and more than $900,000 in past-due dividends. Defrauding a TARP bank is defrauding the federal taxpayers who funded the TARP bailout. SIGTARP and our law enforcement partners will aggressively investigate allegations of fraud that hurt taxpayers’ TARP investments, and perpetrators will be held accountable and brought to justice."