3 Things You Should Know about TARP
When the financial sector began to face massive troubles that threatened to bring down the U.S. banking and investment industry, the government responded through the Troubled Assets Relief Program. This financial program injected billions of dollars of public money into the privately held banks. Most of this money was provided through loan programs, meant to be repaid later. However, because of the large-scale spending at hand, some companies took advantage of this program.
If you have information regarding a fraudulent transaction or dealing with the TARP money provided by the federal government, there may be legal action available to get those funds for the government. To learn more about your options under the False Claims Act, contact the qui tam lawyers of Tycko & Zavareei, LLP, at 202-973-0900 today.
Better Understanding TARP
It is difficult for elected officials to become intimately familiar with much legislation, so that could certainly not be expected of private citizens. As someone who suspects or has specific awareness of abuses of TARP money, it is important to understand the following regarding the program.
#1: The Office of the SIGTARP oversees TARP funds.
This means that any fraud should be caught by this office. However, given the large number of banks and corporations taking from the loan programs, this has been a difficult process. As a result, citizens have been invited to bring forward fraud cases in the name of the government through the False Claims Act.
#2: There were protection programs in place within the TARP bailouts.
The government tried to produce sufficient protections to save bailout money from being abused by bankers and corporations. However, many people found ways around these restrictions, breaking executive pay limitations and similar TARP rules.
#3: TARP was meant to be returned.
Eventually, the federal government was supposed to receive most TARP funds back. Programs like the Capital Purchase Program, offered to troubled institutions to buy up lower-interest loans with the government, were actually supposed to make the government money off of the interest. Because of rampant fraud, this repayment was not perfectly observed.
Contact Us
If you have information regarding fraudulent actions or conduct by a businessperson or banker who received TARP money, you may be entitled to pursue legal action. To discuss qui tam lawsuits in further detail, contact the qui tam attorneys of Tycko & Zavareei, LLP, by calling 202-973-0900 today.
