Government Bails Out Bank CEO After He Expenses Mansion, Jaguar, And Porsche

From inside the Maxine Waters’ ethics trial case comes the story of the government bailing out a corrupt Boston bank that Waters’ husband owned stock in and sat on the board of. 

When Kevin Cohee, the CEO and Chairman of OneUnited, asked the government to loan the bank $50 million in TARP funds, it was discovered that Cohee had expensed quite a lifestyle to the bank’s account.

According to the Boston Herald, Cohee’s car collection (a Porsche, a Jaguar, and more) and his $6.4 million beachfront house had all been paid for by the bank.

Possibly worse, though unrelated, is what allegedly happened inside the house.

Inside the house paid for by the bank, police say, Cohee kept cocaine, illegal narcotics and opiates. (Police say Cohee agreed to participate in a “drug diversion program” in exchange for the drug charges being dismissed.)  And at one point, while the house was being filmed for an unknown MTV series, Cohee met a woman who would later accuse him of sodomy. The pair had met while the woman was working as a stylist on the set of his house while MTV took photos for the show. The sodomy charges were later dropped.

All of this happened on the road to Cohee asking the government to bail out the bank, OneUnited, for $50 million.

porsche tbi

Regulators ended up bailing out Cohee and OneUnited with a loan of $12 million. Then they immediately ordered Cohee to sell the house, Porsche, Jaguar, and the other cars he had expensed to the bank.

A spokesman for Barney Frank, who arranged the government bailout of OneUnited, told the Boston Herald yesterday that Frank was not aware of the drug and sodomy charges against Cohee when he agreed to loan the bank $12 million.

Now OneUnited and other small banks are due to make dividend payments to the Treasury Department on August 16th. OneUnited has missed five dividend payments in a row.

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