Former Bank President Pleads Guilty to TARP Fraud

The Federal Reserve Board announced the issuance of a Consent Order of Prohibition against Darryl Woods, the former president and chairmen of the board of directors of Calvert Financial Corporation.  Woods also served as the former CFO and chairman of the board of directors of Mainstreet Bank.

Both institutions are based in Ashland, Missouri.

"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 through the Troubled Asset Relief Program (TARP)," the board said in a release.

Woods entered a guilty plea in August 2013 stemming from charges that nearly $400,000 of TARP funds intended to help finance businesses and individuals in fact went towards purchasing a luxury condominium in Fort Meyers, Florida.

Later, when questioned about the funds from the Special Inspector General (SIGTARP), Woods failed to disclose the purchase of the condominium, which amounts to "a material misrepresentation of facts relating to the true use of at least part of the TARP funds."

As a part of the order, Woods is prohibited from taking part in the affairs of "any insured depository institution or any holding company of an insured depository institution, or any subsidiary of such holding company."

Additionally, Woods pled guilty to a criminal charge in connection to the misuse of TARP funds. He was sentenced to a term of incarceration on March 27.