Capital Purchase Program
When the federal government set up the Troubled Asset Relief Program (also known as TARP), several different sub-programs were established to achieve the government’s overall goals. One of the most significant of these programs is known as the Capital Purchase Program. This program offered preferred stock and equity purchasing through the federal government. Preferred stock works partially as debt and partially as equity.
Information from whistleblowers has proven instrumental to prosecuting fraud at the federal level. To learn more about your options and rights as a whistleblower, contact the qui tam lawyers of Tycko & Zavareei, LLP, by calling 202-973-0900 today.
Forms of CPP Fraud
The Capital Purchase Program was originally set up by the federal Office of Financial Stability, an agency under the purview of the United States Treasury. When the federal government began planning for TARP appropriation, this purchase program was not a major part of the strategy. However, as noted by the Government Accountability Office, the program quickly shifted $250 billion of the $700 billion fund to preferred stock purchasing. The following are some forms of fraud affecting CPP transactions:
- Companies refusing to pay back obligations
- Companies providing false information to obtain funds
- Misappropriating TARP funds
- Creating false documents or contracts involving TARP funds
A number of citizens have voiced their concerns over the use of TARP funds. Although certainly some of these funds have been used in a legitimate manner, other sums have been falsely obtained or used in an improper manner.
Contact Us
If you have information regarding an instance of fraud with a corporation that received TARP money, there may be legal action available to recover those funds. Under the False Claims Act, whistleblowers enjoy a level of legal protection when they take up a qui tam case. For more information regarding your options, contact the qui tam attorneys of Tycko & Zavareei, LLP, at 202-973-0900 today.
