The US Attorney's office in Delaware has announced the indictment of another former Wilmington Trust executive following investigations by the FBI and the Special Inspector General for the Troubled Asset Relief Program (TARP).
Peter W. Hayes, a former Relationship Manager in the bank's Delaware Commercial real Estate Division, has been charged with 7 counts relating to bank fraud, bribery fraudulently benefiting from a loan transaction.
“The indictment alleges that the defendant, a former Wilmington Trust lender, engaged in multiple fraudulent schemes to benefit one of Wilmington Trust’s largest clients, as well as himself,” said United States Attorney Oberly in a statement. “The client ultimately suffered millions of dollars in losses, which were shouldered by the Bank and its shareholders. Our office will continue to vigorously investigate alleged fraudulent schemes, such as those charged in today’s Indictment, related to the downfall of Wilmington Trust.”
Hayes faces up to 30 years in prison and fines of $1 million on each count.
This is the third bank fraud related case brought by federal prosecutors against a former Wilmington Trust executive in the past year.
Wilmington Trust was sold to M&T Bank in 2010 after a series of bad real estate loans left the over 100 year old financial institution on the verge of closing down.