The Federal Reserve Board has banned Darryl Woods, the former CEO of Mainstreet Bank in Missouri, from working in banking for using federal bailout funds to buy himself a luxury condo in Florida.
Woods was the CEO of Mainstreet Bank and the bank’s holding company, Calvert Financial Corp. when the company applied for and received $1,037,000 in funds from the Troubled Asset Relief Program in 2009.
According to the Order of Prohibition from the Federal Reserve Board, Woods then took $381,487.45 from the TARP funds to purchase a condo in Fort Meyers, Fla.
The Special Inspector General for TARP later investigated Woods’ use of the funds and he “failed to disclose the purchase of the condominium.”
Woods was eventually arrested and charged with misleading SIGTARP over his use of the funds. Woods pleaded guilty to those charges on August 26, 2013. Woods was sentenced to two years of probation last month, according to the Columbia Daily Tribune. He will serve the first eight months of his probation in a halfway house. After that, he’ll serve four months of house arrest and one year of supervised probation.
The Order of Prohibition from the Fed is separate from his criminal charges. The Fed indefinitely banned Woods from working in banking in any capacity. He also cannot serve on the board of any financial institution.
“Woods consented to the issuance of the order, which is based on his participation in unsafe and unsound practices, breaches of fiduciary duty and violations of law and regulation in connection with his and the company's use of funds,” the Fed announced.
The only way that Woods will ever be allowed to work in banking again is with the express written consent of the Fed’s Board of Governors.