Former Wilmington Trust Exec Arraigned - WBOC-TV 16, Delmarvas News Leader, FOX 21 -

Former Wilmington Trust Exec Arraigned

Posted: Updated:
(Photo: MGN)maria (Photo: MGN)maria

WILMINGTON, Del. (AP)- A former Wilmington Trust executive accused of scheming with another bank executive to make improper loans to each other from their respective banks pleaded not guilty Wednesday to federal bank fraud, conspiracy and money laundering charges.
 
Brian D. Bailey, 51, appeared in court for a brief arraignment, where his lawyer waived a reading of the indictment against Bailey and entered a plea of not guilty on his behalf.
 
A few minutes later, in a conference with the judge assigned to the case, prosecutors indicated that they may file additional charges against Bailey.
 
"It's certainly something that's out there and we've discussed at length," Assistant U.S. Attorney Robert Kravetz told Judge Richard Andrews.
 
Kravetz did not provide any details about the potential for additional charges.
 
Andrews held off on setting a trial date after Kravetz and defense attorney Richard Weir indicated that they likely could not be ready for a trial in July, as Andrews had suggested.
 
"I just want to get an idea of the complexity of this case," Weir told the judge.
 
Andrews scheduled another status conference for March 18 to discuss pretrial issues, including prosecutors giving documents to the defense.
 
The indictment of Bailey, a former vice president and Delaware market manager for Wilmington Trust, is the latest development in an ongoing federal investigation of lending practices at the bank, which was sold to M&T Bank Corp. in 2010 after its deteriorating loan portfolio left it on the verge of collapse.
 
Authorities allege that Bailey and James Ladio made roughly two dozen loans and loan modifications to each other over more than a decade, starting in 2001.
 
Ladio, 57, is a former chief lending officer for Artisans Bank and later served as president and CEO of MidCoast Community Bank, which terminated him in August. He pleaded guilty to bank fraud and money laundering charges in December. His sentencing is scheduled for April 17.
 
Prosecutors say the scheme defrauded Wilmington Trust, Artisans and MidCoast, where Bailey worked as a loan officer after resigning from Wilmington Trust in May 2010. Authorities say the two men concealed from the banks that they had authorized loans to each other, misrepresented the purposes for the loans or were "willfully blind" to their true nature, and failed to conduct basic underwriting functions.
 
Authorities also allege that the men used their authority as commercial lenders to originate commercial loans and lines of credit for what they knew to be consumer debt purposes, circumventing the normal approval process and loan terms, and provided loan accommodations to each other that weren't available to the general public.
 
Bailey was asked to resign from MidCoast last May after a former Wilmington Trust colleague, Joseph Terranova, pleaded guilty to conspiracy to commit bank fraud. Terranova also is awaiting sentencing.
 
In addition to the criminal investigation, Wilmington Trust is the subject of a securities class action lawsuit alleging that senior officers and executives portrayed the bank as a conservative lender but in fact played fast and loose with the company's real estate loan portfolio, perpetrating a fraud that led to the demise of the 107-year-old bank.


 

 


 

  • Delmarvawide NewsDelmarvawide NewsMore>>

  • WBOC and FOX21 Reach Agreement with DIRECTV

    WBOC and FOX21 Reach Agreement with DIRECTV

    Friday, August 1 2014 8:00 AM EDT2014-08-01 12:00:27 GMT
    Craig Jahelka, vice president general manager of WBOC-TV issued the following statement early Friday: "WBOC-TV and FOX21 are pleased to announce we will continue to be available to DIRECTV subscribers. We have reached an agreement designed to secure continued carriage of our top-rated stations on DIRECTV for the foreseeable future. "We would like to express our heartfelt gratitude for the support and understanding our family, friends and neighbors here on Delmarva have demons...More
    Craig Jahelka, vice president general manager of WBOC-TV issued the following statement early Friday: "WBOC-TV and FOX21 are pleased to announce we will continue to be available to DIRECTV subscribers. We have reached an agreement designed to secure continued carriage of our top-rated stations on DIRECTV for the foreseeable future. "We would like to express our heartfelt gratitude for the support and understanding our family, friends and neighbors here on Delmarva have demons...More
  • Va. Rep. Cantor Resigning Months Earlier Than Expected

    Va. Rep. Cantor Resigning Months Earlier Than Expected

    Friday, August 1 2014 7:55 AM EDT2014-08-01 11:55:48 GMT
    U.S. Representative Eric Cantor (R-VA) will resign his seat in the House of Representatives months earlier than expected. More
    U.S. Representative Eric Cantor (R-VA) will resign his seat in the House of Representatives months earlier than expected. More
  • White Marlin Open in Ocean City to Start Monday

    White Marlin Open in Ocean City to Start Monday

    Friday, August 1 2014 7:55 AM EDT2014-08-01 11:55:41 GMT
    The 2014 White Marlin Open will be held from August 4th through 8th in Ocean City, Maryland.More
    The 2014 White Marlin Open will be held from August 4th through 8th in Ocean City, Maryland.More
  • Most Popular StoriesMost Popular StoriesMore>>

  • Credit Card Scam Hits Ocean City

    Credit Card Scam Hits Ocean City

    Thursday, July 31 2014 8:46 PM EDT2014-08-01 00:46:29 GMT
    OCEAN CITY, Md.- The Ocean City Police Department is advising citizens of a recent cyber-attack that compromised the security of numerous credit card processing companies nationwide.More
    OCEAN CITY, Md.- The Ocean City Police Department is advising citizens of a recent cyber-attack that compromised the security of numerous credit card processing companies nationwide.More
  • Easton Woman Charged with Murder of Virginia Tech Student

    Easton Woman Charged with Murder of Virginia Tech Student

    Thursday, July 31 2014 12:48 PM EDT2014-07-31 16:48:41 GMT
    A 22-year-old Easton, Md. woman has been charged with both first- and second-degree murder in Virginia's Montgomery County Circuit Court.More
    A 22-year-old Easton, Md. woman has been charged with both first- and second-degree murder in Virginia's Montgomery County Circuit Court.More
  • Trimper's Rides Sued

    Trimper's Rides Sued

    Thursday, July 31 2014 10:09 PM EDT2014-08-01 02:09:38 GMT
    Friday June 28, 2012 started out as a normal day at the amusement park for J and his family until they rode the Hampton I, a mini car and truck ride.More
    Friday June 28, 2012 started out as a normal day at the amusement park for J and his family until they rode the Hampton I, a mini car and truck ride.More
Powered by WorldNow

All content © Copyright 2000 - 2014 Worldnow and WBOC. All Rights Reserved. For more information on this site, please read our Privacy Policy and Terms of Service