Department of the Treasury 

Office of the Special Inspector 

General for TARP 

Congressional Budget 

Justification and Annual 

Performance Report and Plan 

FY 2019 
SIGTARP - 2 

Table of Contents 

Section I – Budget Request............................................................................................................. 3

A – Mission Statement ................................................................................................................... 3

B – Summary of the Request ......................................................................................................... 3

1.1 – Appropriations Detail Table ................................................................................................. 4

1.2 – Budget Adjustments Table .................................................................................................... 4

C – Budget Increases and Decreases Description .......................................................................... 4

1.3 – Operating Levels Table ......................................................................................................... 6

D – Appropriations Language and Explanation of Changes ......................................................... 7

E – Legislative Proposals ............................................................................................................... 7

Section II – Annual Performance Plan and Report ..................................................................... 8

A – Strategic Alignment ................................................................................................................ 8

B – Budget and Performance by Budget Activity ......................................................................... 8

2.1.1 – Investigations Resources and Measures ............................................................................. 8

Investigations Budget and Performance ........................................................................................ 9

2.1.2 – Audit Resources and Measures .......................................................................................... 9

Audit Budget and Performance ...................................................................................................... 9 

Section III – Additional Information ........................................................................................... 11

A – Summary of Capital Investments .......................................................................................... 11

Comments of the Honorable Christy Goldsmith Romero Special Inspector General Troubled 

Asset Relief Program FY 2019 Proposed Funding Level .......................................................... 12
SIGTARP - 3 

Section I – Budget Request 

A – Mission Statement

The Office of the Special Inspector General for the Troubled Asset Relief Program (SIGTARP) is 

a federal law enforcement agency that targets financial institution crime and is an independent 

watchdog protecting the interests of the American people. 

B – Summary of the Request 

The FY 2019 Budget proposes $17,500,000,1 which is 57 percent below the FY 2018 Annualized 

CR level, to conduct oversight over $37.4 billion in TARP housing programs, and $100 million in 

open TARP banking programs. 

SIGTARP is primarily a federal law enforcement agency investigating crime at financial 

institutions that received TARP funds or other TARP recipients in TARP housing programs. 

SIGTARP’s ongoing criminal investigations of recipients of TARP dollars in TARP housing 

programs counter threats to public safety and government interests, including financial institution 

fraud, public corruption, antitrust (unfair competition), and contract fraud. 

 

The $27.8 billion Making Home Affordable Program (MHA) continues until September 2023. The 

Department of the Treasury (Treasury) has paid $18.4 billion and will pay up to an additional 

$9.4 billion to Wells Fargo, Ocwen Loan Servicing, JPMorgan Chase, Bank of America, Nationstar 

Mortgage, Select Portfolio Servicing, CitiMortgage, CIT/One West, Bayview, Ditech, and more 

than 120 other financial institutions. Future TARP payments are not automatic, but instead are 

based on the institution complying with the law and MHA rules. TARP’s Hardest Hit Fund (HHF) 

was scheduled to end in FY 2018, but Congress extended it by four years and expanded it by $2 

billion in the Consolidated Appropriations Act, 2016 (P.L. 114-113). Recipients of TARP dollars 

include 19 state housing finance agencies and hundreds of demolition contractors, subcontractors 

and others. The HHF subprogram for Blight Elimination has grown 1,500 percent to 248 cities or 

counties since August 2013. The HHF subprogram for Down Payment Assistance has grown 1,200 

percent to 10 states since July 2015. 

SIGTARP’s investigations have recovered $10 billion, which translates to a 35 times return on 

investment from its spending of annual appropriations through FY 2017.2

 For each of the last four 

fiscal years, recoveries to the government exceeded SIGTARP’s budget proposal. For example, as 

of January, already in FY 2018 alone, recoveries from SIGTARP investigations were $100 million, 

including $90 million paid to the government. SIGTARP has developed a deep expertise in 

identifying undetected crime, with 408 defendants criminally charged as of January 2018. 

SIGTARP investigations have resulted in significant Department of Justice enforcement actions 

against General Motors and 10 financial institutions including Goldman Sachs, Bank of America, 

JPMorgan Chase, Morgan Stanley, Ally Financial, SunTrust Bank, Fifth Third Bank, Wilmington 

Trust, RBS Securities, and Jefferies and Company. SIGTARP audits in FY 2016 and FY 2017 

identified millions of dollars of waste and abuse; and identified the risk of criminal behavior in 

ongoing TARP programs. 

 

1 Includes $70,000 for training and $50,000 for the Council of the Inspectors General on Integrity and Efficiency. 2 Includes fines, restitution, forfeiture, and full homeowner relief by a large financial institution.
SIGTARP - 4 

1.1 – Appropriations Detail Table 

Dollars in Thousands 

The FY 2017 column reflects levels appropriated in H.R. 255, the Consolidated Appropriations Act of 2017. For further details on the execution 

of these resources, see the 2019 Budget Appendix chapter for the Department of the Treasury. 

1.2 – Budget Adjustments Table 

Dollars in Thousands

Special Inspector General for TARP FTE Amount 

FY 2018 Annualized CR 140 $40,880 

Changes to Base: 

Maintaining Current Levels (MCLs) $213 

Pay Annualization $60 

Non-Pay $153 

Subtotal Changes to Base $213 

Total FY 2019 Base 140 $41,093 

Program Changes: 

Program Decreases (55) ($23,593) 

Technical FTE Adjustment (55) ($9,500) 

Efficiency Savings ($14,093) 

Total FY 2019 Request 85 $17,500 

C – Budget Increases and Decreases Description 

Maintaining Current Levels (MCLs) ......................................................... +$213,000 / +0 FTE

Pay Annualization +$60,000 / +0 FTE 

Funds are requested for annualization of the January 2018 pay-raise. 

Non-Pay +$153,000 / +0 FTE 

Funds are requested for non-labor expenses such as travel, rent, contracts, supplies, and 

equipment. 

Program Decrease .................................................................................... -$23,593,000 / -55 FTE

Technical FTE Adjustment -$9,500,000 / -55 FTE 

The technical FTE adjustment reduces the appropriated FTE level. 

Efficiency Savings -$14,093,000 / -0 FTE 

SIGTARP will also seek to reduce non-personnel costs.

 

Special Inspector General for TARP

Appropriated Resources

New Appropriated Resources FTE AMOUNT FTE AMOUNT FTE AMOUNT FTE AMOUNT FTE AMOUNT

Investigations 114 $32,516 119 $34,748 80 $16,450 (39) ($18,298) -32.77% -52.66%

Audit 27 $8,644 21 $6,132 5 $1,050 (16) ($5,082) -76.19% -82.88%

Subtotal New Appropriated Resources 141 $41,160 140 $40,880 85 $17,500 (55) ($23,380) -39.29% -57.19%

Other Resources

Unobligated Balances from Prior Years 0 $0 0 $0 0 $6,437 0 $6,437 NA NA

Resources from Other Accounts 0 $82 0 $0 0 $1,563 0 $1,563 NA NA

Subtotal Other Resources 0 $82 0 $0 0 $8,000 0 $8,000 NA NA

Total Budgetary Resources 141 $41,242 140 $40,880 85 $25,500 (55) ($15,380) -39.29% -37.62%

FY 2017 FY 2018 FY 2018 to FY 2019

Enacted Annualized CR Request Change % Change

FY 2019
SIGTARP - 5 

Quantifiable Results: SIGTARP’s Return on Investment 

With $10 billion in recoveries from SIGTARP investigations, SIGTARP has a 35 times return on 

investment compared to its annual appropriations through FY 2017. Already in FY 2018, 

recoveries from SIGTARP’s investigations were $100 million, including $90 million paid to the 

government. In FY 2017, recoveries from SIGTARP’s investigations were $65 million, including 

more than $64 million paid to the government. In addition, through forensic audits, in 

August 2017,3

 SIGTARP auditors caught and exposed $3 million squandered by state agencies 

participating in HHF on parties, picnics, catered barbeques, Visa gift cards for employees, flowers, 

gym memberships, zoo admissions, cash bonuses, settlement of lawsuits by former employees, 

free parking for employees, expenses unrelated to HHF, and more. In September 2016,4

SIGTARP auditors caught and exposed $8 million in waste by a Nevada state agency contractor 

who wasted federal dollars earmarked for homeowners on agency overhead, parties, a cocktail bar, 

employee gifts, a monthly payment for the CEO to drive a Mercedes Benz, and more. SIGTARP 

recommended that Treasury recover the millions of TARP dollars wasted. 

Countering Threats to Public Safety & Government Interests 

SIGTARP brings accountability through congressionally-authorized criminal law enforcement. 

With concurrent responsibility with the Federal Bureau of Investigation (FBI) over TARP-related 

crime, SIGTARP saves FBI resources. SIGTARP counters threats to public safety and 

government interests by investigating criminal actors, and neutralizing the threats they pose. With 

408 defendants charged with a crime, and 242 of those defendants already sentenced to prison by 

courts (with others awaiting sentencing), the threat these crimes pose is significant. 

Financial institution fraud: The largest threat in TARP today and in the future is unlawful 

conduct by banks and other financial institutions being paid by Treasury to administer TARP’s 

MHA program, and this is SIGTARP’s highest law enforcement priority. SIGTARP’s record 

reflects 99 bankers charged with a crime related to the bank bailout, with 56 of those bankers 

already sentenced to prison. Remaining work on the bank bailout for FY 2019 supports Justice 

Department prosecutions of individuals investigated by SIGTARP. 

Public corruption: State and local officials award contracts under the HHF Blight Elimination 

subprogram using TARP dollars. The corruption of local officials threatens public safety. 

Antitrust violations: Unfair competitive practices for demolition contracts, like bid rigging and 

contract steering, threatens the quality of work, public safety, and competition, harming the 

government’s interests. 

Contract fraud: Fraud by contractors or state housing finance agencies in HHF harms 

government interests. 

Intelligence-based Approach to Speed Up the Identification of Crime 

With TARP currently spending $1 billion each quarter in HHF and MHA, SIGTARP uses an 

intelligence-based approach to search for crime using industry, financial and human intelligence. 

Every case is different, but SIGTARP capitalizes on similarities to root out crime. SIGTARP 

 

3 https://www.sigtarp.gov/Audit%20Reports/Unnecessary_Expenses_Audit_8.25.17.pdf 4 https://www.sigtarp.gov/Audit%20Reports/HHF%20Nevada_090916.pdf
SIGTARP - 6 

understands complex financial records; and operations of banks, other financial institutions, and 

contractors; and uses intelligence to identify anomalies and trends. Technologies analyze 

mountains of electronic data stored on computers, phones, and other devices, and find digital 

footprints that serve as powerful evidence of criminal intent. Initially created to investigate 

financial institutions that took part in the bank bailout, SIGTARP has converted this intelligencedriven playbook to identify fraud, waste, and abuse in TARP housing programs. SIGTARP’s 

approach speeds up the identification of crime. 

1.3 – Operating Levels Table 

Dollars in Thousands 

Special Inspector General for TARP FY 2017 FY 2018 FY 2019 

Object Classification Enacted Annualized 

CR Request 

11.1 - Full-time permanent 21,788 15,993 8,468 

11.3 - Other than full-time permanent 1,799 1,833 2,413 

11.5 - Other personnel compensation 2,120 1,899 1,825 

11.9 - Personnel Compensation (Total) 25,707 19,725 12,706 

12.0 - Personnel benefits 8,184 5,775 3,294 

Total Personnel and Compensation Benefits $33,891 $25,500 $16,000 

21.0 - Travel and transportation of persons 1,000 1,000 675 

23.2 - Rental payments to others 272 226 226 

23.3 - Communications, utilities, and miscellaneous charges 103 38 23 

24.0 - Printing and reproduction 162 0 0 

25.1 - Advisory and assistance services 2,676 897 897 

25.2 - Other services from non-Federal sources 68 17 17 

25.3 - Other goods and services from Federal sources 7,400 12,583 7,122 

25.6 - Medical care 100 80 60 

25.7 - Operation and maintenance of equipment 48 45 45 

26.0 - Supplies and materials 448 305 286 

31.0 - Equipment 260 189 149 

42.0 - Insurance claims and indemnities 60 0 0 

91.0 - Unvouchered 10 0 0 

Total Non-Personnel $12,607 $15,380 $9,500 

New Budgetary Resources $46,498 $40,880 $25,500 

 

FTE 141 140 85 

Note: The FY 2017 column reflects levels appropriated in H.R. 255, the Consolidated Appropriations Act of 2017. 

For further details on the execution of these resources, see the 2019 Budget Appendix chapter for the Department of 

the Treasury. 

This table includes all available resources, including SIGTARP's annual appropriation and remaining no-year funds.
SIGTARP - 7 

D – Appropriations Language and Explanation of Changes 

Appropriations Language Explanation of Changes 

DEPARTMENT OF THE TREASURY

SPECIAL INSPECTOR GENERAL FOR THE 

TROUBLED ASSET RELIEF PROGRAM 

Federal funds 

SALARIES AND EXPENSES 

For necessary expenses of the Office of the Special Inspector 

General in carrying out the provisions of the Emergency 

Economic Stabilization Act of 2008 (Public Law 110–343), 

$17,500,000. 

Note.— A full-year 2018 appropriation for this account was 

not enacted at the time the budget was prepared; therefore, the 

budget assumes this account is operating under the Continuing 

Appropriations Act, 2018 (Division D of P.L. 115–56, as 

amended). The amounts included for 2018 reflect the 

annualized level provided by the continuing resolution.

E – Legislative Proposals 

PPIP Funds 

The Public-Private Investment Program (PPIP) Improvement and Oversight Act of 2009 

(12 U.S.C. § 5231a) provided $15 million in no-year appropriations to SIGTARP for the purpose of 

providing oversight to PPIP and the Term Asset-Backed Securities Loan Facility. SIGTARP does not 

plan PPIP or TALF activity in FY 2019. SIGTARP is requesting that these PPIP funds be made 

available to also support SIGTARP’s oversight of ongoing TARP programs. 

PROPOSED LANGUAGE 

Sec. 128 Notwithstanding paragraph (2) of section 402(c) of the Helping Families Save their Homes 

Act of 2009, in utilizing funds made available by paragraph (1) of section 402(c) of such Act, the 

Special Inspector General for the Troubled Asset Relief Program shall prioritize the performance of 

audits or investigations of any program that is funded in whole or in part by funds appropriated under 

the Emergency Economic Stabilization Act of 2008, to the extent that such priority is consistent with 

other aspects of the mission of the Special Inspector General.
SIGTARP - 8 

Section II – Annual Performance Plan and Report 

A – Strategic Alignment 

The Investigations budget activity supports SIGTARP’s priority of law enforcement of crimes 

related to TARP and the limited Audit budget activity supports SIGTARP as the independent 

watchdog over TARP dollars. Both activities support and complement Treasury’s efforts to 

safeguard and protect the integrity of the financial system. 

SIGTARP supports the Department of the Treasury’s FY 2018 – 2022 Strategic Plan (Strategic 

Plan) goals under the following: 

 Goal 4: Transform Government-wide Financial Stewardship; and 

 Goal 5: Achieve Operational Excellence. 

With the publication of the Strategic Plan, SIGTARP will work in FY 2018 to baseline its 

performance against the new strategic objectives. This could result in additional changes to 

performance measures in the FY 2020 Budget. 

SIGTARP coordinates with other law enforcement agencies, leveraging its unique position and 

expertise by forming law enforcement partnerships. 

B – Budget and Performance by Budget Activity 

2.1.1 – Investigations Resources and Measures 

Dollars in Thousands 

Measure FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 FY 2017 FY 2018 FY 2019

Actual Actual Actual Actual Actual Target Target Target

Percentage of Cases 

Accepted for Consideration 

by Civil or Criminal 

Authorities Resulting in a 

Positive Final Outcome

N/A N/A N/A 77 81 70 70 35

Percentage of Cases 

Presented to Civil or 

Criminal Authorities within 

Eight Months of the Case 

Being Opened

N/A N/A N/A 80 80 70 70 25

Percentage of Cases That 

are Joint Agency/Task 

Force Investigations

79 76 70 71 75 70 70 70

Percentage of Preliminary 

Investigations Converted to 

Full Investigations within 

180 Days

82 96 100 99 93 80 DISC DISC

Key: DISC - Discontinued

FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018 FY 2019

Actual Actual Actual Actual Actual Annualized 

CR Request

Appropriated Resources $29,230 $27,382 $27,295 $32,478 $32,103 $34,748 $16,450

Other Resources $1,516 $5,656 $6,354 $376 $82 0 $7,520

Budget Activity Total $30,746 $33,038 $33,649 $32,854 $32,185 $34,748 $23,970

110 119 115 103 114 119 80

 Resource Level

FTE
SIGTARP - 9 

Investigations Budget and Performance 

($16,450,000 from direct appropriations) 

SIGTARP exceeded all metric targets in FY 2017. The “Percentage of Cases Accepted for 

Consideration by Civil or Criminal Authorities Resulting in a Positive Final Outcome” in FY 2017 

was 81 percent which exceeded the target of 70 percent. The “Percentage of Cases Presented to 

Civil or Criminal Authorities within Eight Months of the Case Being Opened” was 80 percent 

which exceeded the target of 70 percent. The “Percentage of Cases That are Joint Agency/Task 

Force Investigations” with other law enforcement agencies was 75 percent which exceeded the 

target of 70 percent. The “Percentage of Preliminary Investigations Converted to Full 

Investigations within 180 days” was 93 percent which exceeded the target of 80 percent. This 

measure was discontinued for FY 2018 because it has been at or close to 100 percent for the last 

three years, and is now part of SIGTARP’s regular process. 

2.1.2 – Audit Resources and Measures 

Dollars in Thousands 

Measure FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 FY 2017 FY 2018 FY 2019

Actual Actual Actual Actual Actual Target Target Target

Number of Completed Audit 

Products including Referral 

to Investigations Division 

(Units)

N/A N/A N/A 11 8 7 DISC DISC

Percentage of 

Congressional Inquiries 

Responded to within 45 

Days of Receipt

N/A N/A 100 100 100 85 DISC DISC

Number of completed audit 

products identifying waste, 

abuse, mismanagement, 

inefficiencies, or referrals to 

Investigations Division 

(Units) 

N/A N/A N/A N/A N/A N/A 3 1

Key: DISC - Discontinued

Audit Budget and Performance 

($1,050,000 from direct appropriations) 

SIGTARP exceeded its performance measure “Number of Completed Audit Products including 

Referrals to Investigations Division” of seven in FY 2017, with eight products. This measure was 

discontinued for FY 2018 because it was replaced by a similar measure that now emphasizes 

audit’s focus on fraud, waste, and abuse. SIGTARP exceeded its 85 percent goal of “Percentage 

of Congressional Inquiries Responded to within 45 Days of Receipt” by accomplishing 100 

percent. This measure was discontinued for FY 2018 because it has been at 100 percent for the 

last two years, and is now part of SIGTARP’s regular process.

FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018 FY 2019

Actual Actual Actual Actual Actual Annualized 

CR Request

Appropriated Resources $10,376 $7,219 $6,824 $7,618 $7,530 $6,132 $1,050

Other Resources $1,947 $1,069 $99 0 0 $480

Budget Activity Total $10,376 $9,166 $7,893 $7,717 $7,530 $6,132 $1,530

57 45 35 34 27 21 5

 Resource Level

FTE
SIGTARP - 11 

Section III – Additional Information 

A – Summary of Capital Investments 

SIGTARP has no capital investments. Capital investments that support SIGTARP are included in 

the Departmental Offices’ plan. 

A summary of capital investment resources can be found at: 

http://www.treasury.gov/about/budget-performance/Pages/summary-of-capital-investments.aspx 

This website also contains a digital copy of this document.
SIGTARP - 12 

Comments of the Honorable Christy Goldsmith Romero 

Special Inspector General Troubled Asset Relief Program 

FY 2019 Proposed Funding Level

Under the provisions of section 6(g)(3)(E) of the Inspector General Act of 1978, as amended, as 

applied through the Emergency Economic Stabilization Act of 2008, the Special Inspector 

General has provided the following comments regarding FY 2019 proposed funding: 

The FY 2019 budget request, which is 57% below the FY 2018 Annualized CR level 

substantially inhibits the Office of the Special Inspector General for TARP (SIGTARP) 

from performing the duties of the office, including audits and criminal investigations. The 

proposed reduction does not reflect that nearly all of SIGTARP’s planned work for 

FY 2019 is over $37.4 billion of TARP housing programs, which are not in wind down. 

The Making Home Affordable Program (MHA) has $9.5 billion to be spent through 

FY 2023, and has not declined in steady participation of about one million homeowners 

from FY 2015 to FY 2017. The Hardest Hit Fund (HHF) program is in a ramp-up stage

after Congress added $2 billion in the FY 2016 appropriations, and Treasury extended 

TARP spending of $2.65 billion through FY 2022. HHF is not limited to Treasury 

disbursements as dollars are recaptured into the program when houses are sold. 

SIGTARP has already found fraud, waste, and abuse in both of these programs. 

Taxpayers will lose millions of dollars under the request because SIGTARP’s work results 

in recoveries of millions of dollars to the Government each year. SIGTARP has a 35 times 

return on investment in actual dollars recovered. In each of FY 2015, FY 2016, FY 2017, 

and FY 2018, SIGTARP’s actual recoveries to the Government have exceeded its 

appropriation. FY 2017 recoveries of $64.31 million to the Government exceeded the 

$41.16 million appropriation, and FY 2018 recoveries of $90 million to the Government 

exceeded the $40 million Annualized CR. SIGTARP’s investigations have also resulted in 

millions of dollars recovered for victims, and SIGTARP’s audits have found millions of 

dollars in waste for Treasury to recover – waste that Treasury failed to catch. Substantial 

reductions to SIGTARP’s budget will reduce Government recoveries. 

SIGTARP already has reduced its budget substantially from FY 2017 levels to reflect that 

TARP investments in banks, autos, and AIG have been wound down to $100 million 

outstanding. After achieving criminal prosecutions of 408 defendants including 99 

bankers, and Department of Justice actions against General Motors and 10 financial 

institutions, SIGTARP has reduced resources over TARP investments to only the resources 

necessary to support DOJ prosecutions of bankers SIGTARP investigated. 

Criminal investigations: SIGTARP’s highest priority is investigations of unlawful conduct 

by banks and others administering the $27.8 billion MHA program — investigations that 

would be shut down under this proposed budget. These investigations require resources 

because of the size and complexity of the institutions and the amount of TARP dollars at 

stake. The major current and future TARP recipients in MHA have a track record of 

wrongdoing and enforcement actions, which creates a high risk of fraud, waste, and abuse. 

For example, Wells Fargo, the subject of a well-publicized 2016 enforcement action, has 

already received $3 billion in MHA, and will receive up to an additional $1.4 billion in 
SIGTARP - 13 

TARP dollars. Ocwen, the subject of a 2017 enforcement action by 22 state attorneys 

general, has received $4.6 billion, and will receive up to an additional $2.4 billion in 

TARP. JPMorgan Chase, the subject of a Justice Department action investigated by 

SIGTARP related to MHA, has received $2.9 billion in MHA and will receive up to an 

additional $1 billion. Bank of America, the subject of a Justice Department action 

investigated by SIGTARP related to MHA, has received $2.9 billion and will receive up to 

an additional $762 million. SIGTARP has reported repeatedly about each financial 

institution’s track record of breaking the MHA rules. SIGTARP has proven expertise in 

identifying fraud, waste, and abuse in large financial institutions, with our investigations 

resulting in Justice Department enforcement actions against 10 financial institutions, 

including for example, Goldman Sachs, Morgan Stanley, Bank of America, JPMorgan 

Chase, Fifth Third Bank, Ally Financial, and SunTrust Bank. 

SIGTARP has a significant number of criminal investigations into the Hardest Hit Fund, 

many of which would also be shut down under the proposed budget. Of high risk is the 

$800 million blight subprogram that pays TARP dollars to demolition contractors which 

has grown 1,500% to 248 cities or counties. SIGTARP investigations counter threats such 

as fraud, corruption, contract steering, bid-rigging, and environmental crimes. 

SIGTARP’s audits in 2016 and 2017 have uncovered that the program is at significant risk 

of fraud, waste and abuse: (1) lacking are standard requirements for competition and 

limits on Federal dollars to only necessary and reasonable costs; (2) demolition and other 

related costs rose by 90% in the largest blight state; (3) homeowners were evicted so their 

homes could qualify for demolition to move a Ford automobile dealership to their street; 

and (4) the U.S. Army Corps of Engineers found mishandling of asbestos, and the risk of 

asbestos exposure, contaminated soil, and illegal dumping in Flint, Michigan, with risks 

throughout the program. 

Audits: In 2016 and 2017, SIGTARP’s forensic audits uncovered millions of dollars 

wasted in state agency expenses in the Hardest Hit Fund, including monthly payments for 

a CEO to drive a Mercedes Benz, country club lunches, holiday parties, picnics, catered 

barbeques with Treasury employees, steak and seafood dinners, a pizza party to celebrate 

the new HHF funding, Visa gift cards for employees, zoo admissions, gym memberships, 

bonuses included a fired CEO’s $20,000 severance package, settlements of discrimination 

and wrongful termination lawsuits, and more. SIGTARP’s audits have a deterrent impact 

on waste that will be lost under the proposed budget. With state agencies spending $1.1 

billion on TARP funds on their own expenses, SIGTARP’s forensic audit expertise is 

crucial in identifying waste that Treasury’s reviews missed. 

The proposed budget substantially inhibits SIGTARP’s ability to: (1) identify costly waste 

and abuse in TARP housing programs in ongoing and future audits, and (2) conduct 

ongoing and future criminal investigations in TARP housing programs that lead to 

indictments, convictions, prison sentences, and recoveries. SIGTARP will not be able to 

do the job the taxpayers need and Congress expects in the absence of sufficient funding. 

Taxpayers are not protected if SIGTARP’s budget is reduced 50% while Treasury has 

grown the HHF blight program 1,500% and is scheduled to pay billions in TARP dollars 

to companies that have been the subject of scandals.