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Client Alert: SIGTARP Issuing Subpoenas To Banks

SIGTARP Continues Aggressive Investigation Of TARP Recipients’ Potential Fraud

SIGTARP’s Mission

The Office of the Special Inspector General for the Troubled Asset Relief Program (SIGTARP) was established by Congress in 2008 to investigate cases of fraud, waste and abuse of TARP funds and programs.  

SIGTARP is not just waiting for whistleblowers to deliver potential fraud cases.  Its agents review examination reports prepared by regulators of institutions that received TARP funds, proactively looking for red flags such as significant loan losses.  If those exam reports pique the interest of the agent, SIGTARP may open an investigation and serve a subpoena for documents.  That subpoena might be the last thing a bank hears from SIGTARP after it produces responsive documents, or it could be the beginning of a criminal prosecution (or something in between).

SIGTARP has its own investigative resources, but it also partners with other law enforcement agencies, including the Department of Justice and the Securities and Exchange Commission, to identify potential cases of fraud and to pursue enforcement actions against the people and institutions that it suspects committed that fraud.

SIGTARP has had more visible success than other law enforcement agencies in pursuing fraud cases against financial institutions (in its short life, its investigations have led to 122 criminal convictions) and it remains on the lookout for potential fraud to investigate.

What To Do If You Receive a SIGTARP Subpoena

The first steps in responding to an investigative subpoena may have a significant impact on whether the investigation follows a smooth or bumpy road.  Banks that receive an investigative subpoena from SIGTARP should:

Contact Us

We are assisting a number of our clients who have received subpoenas and other less formal inquiries from SIGTARP to ensure that their responses and disclosures are properly handled.

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