The Federal Reserve prohibited a former Missouri bank chairman from involvement in any bank management after he admitted to using federal bailout money to buy a luxury condominium.
Darryl Layne Woods, former president and chairman of Calvert Financial Corp. of Ashland, Missouri, consented to the sanctions "based on his participation in unsafe and unsound practices, breaches of fiduciary duty and violations of law and regulation" in his use of funds under the Troubled Asset Relief Program, the Fed said today in a statement in Washington.
Woods pleaded guilty in August to misleading federal investigators after using Tarp money to buy a condominium in Fort Myers, Florida.
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 in August.
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.
Woods was sentenced to a prison term on March 27 by the U.S. District Court, Western District of Missouri, the Fed said today in the statement describing its consent order.
He is serving a two-year probationary term, including eight months in a half-way house, Woods's attorney, J.R. Hobbs of Kansas City, said in a phone interview. Woods was also required to pay about $96,000 in restitution, Hobbs said.
Woods "accepts responsibility for his actions," Hobbs said.