Reporting TARP fraud or bailout program fraud and obtain a whistleblower reward

If you properly report TARP fraud or bailout program fraud against the federal government you can get a significant monetary reward. But there are very specific rules and requirements you must follow when you report TARP or bailout program fraud or you won’t be eligible for a reward.

The government spent nearly $3 trillion under the TARP program and a dozen other bailout programs. Because nearly 10% of all government spending is lost to fraud, that means TARP fraud and bailout fraud could be $300 billion. The Department of Justice and its whistleblower reward program needs you to step forward if you have information to prove a company is cheating or defrauding the government under TARP or bailout programs.

This article tells you how to get a reward for reporting TARP or bailout program fraud against the U.S. federal government by a bank, financial institution or other recipient of TARP or bailout funds from the government.

Tips for how to report TARP fraud or bailout program fraud

Below are a few tips for how to apply for a reward and how to report TARP or bailout program fraud against the government.

First, you cannot simply call a hotline or report the TARP or bailout program fraud to a government official. That’s because the reward program has very specific requirements that must be scrupulously followed. Instead, to get a reward for reporting TARP or bailout program fraud you must use a lawyer and file a qui tam lawsuit that alleges the TARP or bailout program fraud. Although this sounds expensive, attorneys actually take reward cases on a contingency basis for handling a whistleblower reward matter for reporting TARP or bailout program fraud.

Second, you must possess specific and detailed information about the TARP or bailout program fraud. The government turns down three-fourths of reward applications. Therefore, it is critical that you select very experienced legal counsel who knows how to present a TARP or bailout program fraud claims for rewards.

Examples of TARP fraud or bailout program fraud

Below are just a few examples of TARP or bailout program fraud. The key is if you know of a bank, financial institution or other recipient of TARP or bailout program funding that was either not eligible for them or lied in the application or repayment process, it is fraud and you may be entitled to a reward.

Here are two common examples of TARP or bailout fraud by a bank or financial institution:

  • Using collateral already in default or that is from a fraudulent loan
  • Lying about or overstating the value of property or debt rating

Examples of balance sheet fraud under TARP or bailout programs

Here are a few more examples of TARP fraud or other bailout program fraud focusing on balance sheet fraud, common to banks or financial institutions but also applicable to any recipient of TARP or bailout funds:

  • Claiming the balance sheet is only levered 30 to 1 when it is not
  • Hiding assets off-shore or overseas
  • Having a separate balance sheet offshore or overseas
  • Using overseas “shell” banks
  • Hiding liabilities through the use of Special Purpose Vehicles (SPVs)
  • Hiding liabilities through the use of Structured Investment Vehicles (SIVs)
  • Concealing contingent liabilities
  • Overstating assets or understating liabilities

How much reward for reporting TARP or bailout program fraud?

The size of any whistleblower reward for reporting TARP or bailout program fraud is determined by the size of the fraud. That’s because you get a percentage of the funds actually recovered by the government based on your allegations of TARP fraud or bailout program fraud.

For instance, if a bank or other entity cheated or defraud the government under TARP or bailout programs, the whistleblower is entitled to a reward of between 15% and 25% of what amount the federal government recovers back. For instance, if the bank or financial or other entity lied to get funds and repays $10 million, the reward would be between $1.5 million and $2.5 million. Similarly, if the amount of the TARP or bailout fraud by a bank, financial institution or other recipient of TARP or bailout funds is $100 million, the amount of a reward could be $15 million to $25 million.

How to report TARP fraud or bailout program fraud

Mr. Hesch is available to review your information and decide if you have the right kind of a TARP or bailout program fraud case that may earn a reward. The remainder of this website and books written by Mr. Hesch provide additional information on how to report TARP or bailout program fraud and how to apply for a reward.

See the link below “Do I have a case” to have Mr. Hesch review your potential case for how to get a reward for reporting TARP or bailout program fraud against the government.

See the link below “Report Fraud” to learn more about how to get a reward for reporting TARP or bailout program fraud.