The Qui Tam Team Blog Join In the Fight Against Fraud

Is Your Company Committing TARP Fraud?

This post was written by Josh

The government's Troubled Asset Relief Program (TARP) is the Treasury fund set up in 2008 to purchase toxic assets and prevent further financial meltdown. Unfortunately, the program's hasty implementation and outlays of massive amounts of cash make TARP ripe for fraud.

According to the government's TARP watchdog, SIGTARP (Special Inspector General for the Troubled Asset Relief Program), there are several types of TARP fraud that should be reported. These include:

• Allegations of fraud, including false statements, false claims and misrepresentations affiliated with the TARP.
• Any activities that might impact the integrity of the Troubled Asset Relief Program including, but not limited to, allegations of fraud or misconduct by Federal employees and/or entities receiving TARP funds.
• Actions by persons or entities attempting to misrepresent their association with TARP by utilizing deceptive contracts or financial instruments; including, allegations of identity theft or misrepresentations.

We've blogged previously about one of the first people to get smacked by SIGTARP for committing fraud. In that case, a financial planner ripped off his retirement-ready clients by telling them that he had invested their money in non-existent "TARP-guaranteed debt." This loathsome individual took advantage of people's confidence in government-backed securities. Another potential area for TARP fraud is falsification of accounting records in order to obtain TARP funding. Testimony given before Congress by the Assistant Director of the FBI, Kevin L. Perkins, indicates that the FBI has observed a rise in this type of fraud in particular.

SIGTARP has a special hotline for reporting fraud. Of course, whistleblowers often need experienced legal representation, and the Qui Tam Team is on your side. If you believe that there is some type of fraudulent activity related to your company's receipt of TARP funds, follow your instincts.

You can read more about TARP fraud on the Qui Tam Team website.