2 Ex-Wilmington Trust Execs Indicted in Bank Fraud Case - WBOC-TV 16, Delmarvas News Leader, FOX 21 -

2 Ex-Wilmington Trust Execs Indicted in Bank Fraud Case

Posted:

DOVER, Del. (AP) - Two former top executives of Wilmington Trust were indicted by a federal grand jury Wednesday on charges of making false statements to government officials about the troubled loan portfolio that led to the bank's demise.

William B. North, 55, the bank's former chief credit officer, and Kevyn Rakowski, 61, who served as controller, are charged with one count of making false statements to the Securities and Exchange Commission and three counts of making false statements to the Federal Reserve.

Prosecutors say the charges stem from North's and Rakowski's involvement in concealing the amount of past due loans on the bank's books during October and November 2009.

North and Rakowski are the highest-ranking former Wilmington Trust officials to be indicted so far in an ongoing federal investigation into lending practices at the bank prior to its failure and hasty acquisition by M&T Bank Corp. in 2011.

The investigation has led to indictments against several Delaware bank executives and real estate developers, and guilty pleas from three other former Wilmington Trust employees.

Shareholders also have challenged the conduct of banks officials in a class-action lawsuit in federal court.

"This indictment represents another significant step forward in holding accountable those individuals whose criminal conduct contributed to the decline of Wilmington Trust," said U.S. Attorney Charles Oberly III.

North, of Bryn Mawr, Pennsylvania, and Rakowski, of Lakewood Ranch, Florida, are scheduled to make their initial court appearances on May 21. Their attorneys deny the allegations in the indictment.

"We'll challenge these charges vigorously until the end," said David Wilks, an attorney for North.

Authorities say Wilmington Trust was required to report in its quarterly filings the quantity of its loans for which payment was past due for 90 days or more, but that the two defendants helped conceal the truth about Wilmington Trust's loan portfolio from the investing public and bank regulators.

Authorities allege that North approved the exclusion or "waiver" of past due loans from internal reports he knew would be used to generate the bank's external financial reports. Rakowski approved the bank's filings with the SEC and the Federal Reserve knowing that those reports did not include past due loans that had been "waived," according to the indictment.

David Wilks, an attorney for North, said North has been completely open and cooperative with federal authorities, and that the indictment was "terribly unfair."

Wilks said North had no knowledge of any criminal activity and that he had no public reporting duties regarding the bank's loan portfolio. Wilks also said the waiving of past due loans from the reporting list had been a practice at Wilmington Trust for years, although North did not consider it as the best administrative practice.

"He was working to rectify problems that other people have admitted committing," Wilks said.

Henry Klingeman, an attorney for Rakowski, described her as "a conscientious and capable official at Wilmington Trust."

"Contrary to the allegations, she and other colleagues acted in good faith as they tried to help the bank through difficulties precipitated by the 2008 financial crisis, among other challenges," Klingeman said in an email.

  • Delmarvawide NewsDelmarvawide NewsMore>>

  • Delaware State Police Seek Help in Identifying Bank Robbery Suspect

    Delaware State Police Seek Help in Identifying Bank Robbery Suspect

    Saturday, September 22 2018 3:25 PM EDT2018-09-22 19:25:26 GMT
    Saturday, September 22 2018 3:25 PM EDT2018-09-22 19:25:26 GMT
    Suspect WantedSuspect Wanted
    Suspect WantedSuspect Wanted
    NEWARK, Del.- The Delaware State Police are asking the public for assistance in identifying a bank robbery suspect.More
    NEWARK, Del.- The Delaware State Police are asking the public for assistance in identifying a bank robbery suspect.

    More
  • Rehoboth Considers Potential Parking Solutions

    Rehoboth Considers Potential Parking Solutions

    Saturday, September 22 2018 3:11 AM EDT2018-09-22 07:11:01 GMT
    Saturday, September 22 2018 3:16 AM EDT2018-09-22 07:16:27 GMT
    Downtown Rehoboth Beach (Photo: WBOC)Downtown Rehoboth Beach (Photo: WBOC)
    Downtown Rehoboth Beach (Photo: WBOC)Downtown Rehoboth Beach (Photo: WBOC)
    Some in Rehoboth Beach say they're fed up with searching for parking in prime locations--like along Rehoboth Avenue. Today the city's parking advisory committee presented those solutions to the Board of Commissioners.More
    Some in Rehoboth Beach say they're fed up with searching for parking in prime locations--like along Rehoboth Avenue. Today the city's parking advisory committee presented those solutions to the Board of Commissioners. More
  • Investigation Finds Maryland Culpable in Death of Player

    Investigation Finds Maryland Culpable in Death of Player

    Saturday, September 22 2018 12:08 AM EDT2018-09-22 04:08:32 GMT
    Saturday, September 22 2018 12:08 AM EDT2018-09-22 04:08:32 GMT
    An independent investigation into the death of University of Maryland football player Jordan McNair has determined that trainers on the scene did not follow proper procedures after he collapsed on the field.More
    An independent investigation into the death of University of Maryland football player Jordan McNair has determined that trainers on the scene did not follow proper procedures after he collapsed on the field.More
  • Most Popular StoriesMost Popular StoriesMore>>

  • Rehoboth Considers Potential Parking Solutions

    Rehoboth Considers Potential Parking Solutions

    Saturday, September 22 2018 3:11 AM EDT2018-09-22 07:11:01 GMT
    Saturday, September 22 2018 3:16 AM EDT2018-09-22 07:16:27 GMT
    Downtown Rehoboth Beach (Photo: WBOC)Downtown Rehoboth Beach (Photo: WBOC)
    Downtown Rehoboth Beach (Photo: WBOC)Downtown Rehoboth Beach (Photo: WBOC)
    Some in Rehoboth Beach say they're fed up with searching for parking in prime locations--like along Rehoboth Avenue. Today the city's parking advisory committee presented those solutions to the Board of Commissioners.More
    Some in Rehoboth Beach say they're fed up with searching for parking in prime locations--like along Rehoboth Avenue. Today the city's parking advisory committee presented those solutions to the Board of Commissioners. More
  • Kent County Man Shot While in His Yard

    Kent County Man Shot While in His Yard

    Friday, September 21 2018 6:20 PM EDT2018-09-21 22:20:00 GMT
    Friday, September 21 2018 6:23 PM EDT2018-09-21 22:23:48 GMT
    Credit: WBOCCredit: WBOC
    Credit: WBOCCredit: WBOC
    Delaware State Police are investigating a incident that occurred on September 20, where a man from Magnolia, Delaware was shot while trying to bring his dog inside.More
    Delaware State Police are investigating a incident that occurred on September 20, where a man from Magnolia, Delaware was shot while trying to bring his dog inside. More
  • Delaware State Police Seek Help in Identifying Bank Robbery Suspect

    Delaware State Police Seek Help in Identifying Bank Robbery Suspect

    Saturday, September 22 2018 3:25 PM EDT2018-09-22 19:25:26 GMT
    Saturday, September 22 2018 3:25 PM EDT2018-09-22 19:25:26 GMT
    Suspect WantedSuspect Wanted
    Suspect WantedSuspect Wanted
    NEWARK, Del.- The Delaware State Police are asking the public for assistance in identifying a bank robbery suspect.More
    NEWARK, Del.- The Delaware State Police are asking the public for assistance in identifying a bank robbery suspect.

    More
  • Most Popular VideosMost Popular VideosMore>>

  • Whale Skull Recovered from Pickering Beach in Kent County

    Whale Skull Recovered from Pickering Beach in Kent County

    The skull of a deceased juvenile whale that washed up along the Kent County coast last year was recovered on Friday at Pickering Beach by staffers with the Delaware Museum of Natural History.

    The whale initially turned up at Port Mahon but was moved to Pickering Beach by the State of Delaware to naturally decompose into the bones that remain on the beach.

    More

    The skull of a deceased juvenile whale that washed up along the Kent County coast last year was recovered on Friday at Pickering Beach by staffers with the Delaware Museum of Natural History.

    The whale initially turned up at Port Mahon but was moved to Pickering Beach by the State of Delaware to naturally decompose into the bones that remain on the beach.

    More
  • Rehoboth Considers Potential Parking Solutions

    Rehoboth Considers Potential Parking Solutions

    Some in Rehoboth Beach say they're fed up with searching for parking in prime locations--like along Rehoboth Avenue.

    Now--the city is exploring options to provide solutions to the problem. Today the city's parking advisory committee presented those solutions to the Board of Commissioners.  

    Among some of the explored topics were extending the meter season in the city, as well as hiking up the price of metered parking in popular areas.

    More

    Some in Rehoboth Beach say they're fed up with searching for parking in prime locations--like along Rehoboth Avenue.

    Now--the city is exploring options to provide solutions to the problem. Today the city's parking advisory committee presented those solutions to the Board of Commissioners.  

    Among some of the explored topics were extending the meter season in the city, as well as hiking up the price of metered parking in popular areas.

    More
  • Sussex County Recovering Addict Reflects

    Sussex County Recovering Addict Reflects

    The Sussex County Health Coalition recently jumped on the purple band wagon to raise awareness for substance abuse. 

    In light of that campaign on local man, Bruce Ricketts, is speaking out about his journey through addiction in hopes of it becoming another person's inspiration. 

    Bruce lives with 11 other people in an Oxford house that all share similar struggles. The goal in the house is to give recovering addicts a safe place to rebuild their lives.

    More

    The Sussex County Health Coalition recently jumped on the purple band wagon to raise awareness for substance abuse. 

    In light of that campaign on local man, Bruce Ricketts, is speaking out about his journey through addiction in hopes of it becoming another person's inspiration. 

    Bruce lives with 11 other people in an Oxford house that all share similar struggles. The goal in the house is to give recovering addicts a safe place to rebuild their lives.

    More
Powered by Frankly

All content © Copyright 2000 - 2018 WBOC. All Rights Reserved. For more information on this site, please read our Privacy Policy, and Terms of Service, and Ad Choices