Bank Executive Bought Florida Condo With Bailout Money

A Missouri bank chairman admitted to using bailout money from the Troubled Asset Relief Program to buy a luxury condominium in Fort Myers, Florida.

Darryl Layne Woods, 48, pleaded guilty to misleading federal investigators before U.S. Magistrate Judge Matt J. Whitworth today in Jefferson City, Missouri.

While serving as chairman of Mainstreet Bank and its holding company, Calvert Financial Corp., Woods arranged for Calvert to obtain $1 million in TARP money, more than $381,000 of which he used for the condo in 2009, according to a plea agreement filed yesterday.

Woods failed to disclose that expenditure in response to a use-of-funds inquiry from the relief program’s inspector general, according to the plea agreement.

Under the agreement, his crime is a misdemeanor punishable by as long as one year in prison. No sentencing date has been set, Woods’s lawyer, J.R. Hobbs of Kansas City, said today in a phone interview.

“Mr. Woods accepts responsibility for the misdemeanor charge negotiated with the government,” Hobbs said.

The case is U.S. v. Woods 13-cr-04035, U.S. District Court, Western District of Missouri (Jefferson City).

To contact the reporter on this story: Andrew Harris in the Chicago federal courthouse at aharris16@bloomberg.net

To contact the editor responsible for this story: Michael Hytha at mhytha@bloomberg.net

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