First State real estate developer Joseph Capano will serve time in federal prison in a case involving a housing development near New Castle.
Capano - a 75 year old Middletown developer - was sentenced Wednesday to 21 months of incarceration followed by 12 months of home confinement.
In March he pled guilty to one count of bank fraud and one count of knowingly violating the Clean Water Act.
Both charges were related to Capano’s conduct during construction of the Riverbend at Old New Castle development project located near Route 9 in New Castle.
The U.S. Attorney General’s Delaware District office says Capano misused approximately $420,000 in loan funds, including $63,000 for a jewelry purchase. It says Capano told Maryland-based Cecil Bank that the funds would be used for the Riverbend development, but instead spent them on personal expenses.
In addition, court papers say Capano knowingly filled wetlands at the Riverbank Development without a permit.
Capano has also been ordered to pay a little more than $685,000 restitution to Cecil Bank, and a fine of $50,000 for the environmental violation.
