Congress passed the Troubled Assets Relief Program (TARP) as a stimulus measure to help re-invigorate the economy. The federal government has now pledged $3 trillion toward stabilizing financial companies, rescuing domestic automakers, and helping banks, financial institutions, and other mortgage-related companies to shed troublesome securities. Unfortunately, mass non-compliance with stimulus program obligations already shows that the Government needs whistleblowers now more than ever to recover misspent public dollars.
TARP’s hasty launch has the Government bracing for likely fraud. The FBI wants to be proactive in ensuring that government funds will be used appropriately. EY stands ready to assist whistleblowers that become aware of the misuse of TARP funds. Existing laws help protect whistleblower confidentiality. If you have witnessed fraud by companies or institutions that receive government funds, you could be rewarded for coming forward as a whistleblower.
What is TARP Fraud?
Types of TARP Cases
Likely TARP fraud includes, but is not limited to:
- False certification of TARP funds eligibility;
- Conflicts of interest for fund managers;
- Collusion between participants;
- Failure to comply with TARP regulations;
- Money laundering;
- Fraud in mortgage modifications (i.e. falsification of residence, income, and/or participants in mortgage transactions);
- Failure to comply with the Single Audit Act.
The federal government has passed updated False Claims Act (“FCA”) legislation to pay whistleblowers 15 to 30% of the government’s recovery for legitimate claims of fraud, waste, or abuse of government funds. The FCA empowers private citizens to blow the whistle on fraud and to act as the federal government’s watchdog. The FCA allows anyone - - employees, subcontractors, competitors, and others - - to file suit on behalf of the United States Government in order to stop misuse of TARP or other government funds and, if there is a recovery, to receive a substantial reward for doing so.
