A former Wilmington Trust bank executive has pleaded guilty to a pair of conspiracy charges today (Monday) in federal court.
United States Attorney for the District of Delaware Charles Oberly says Brian Bailey, the bank’s former Delaware Market Manager, admitted to conspiring to falsify records to conceal the bank’s true financial condition.
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 shutting down.
Oberly says the 51-year-old Bailey also pleaded guilty to a separate charge of conspiring with James Ladio to provide multiple loans to each other at their respective banks under terms and conditions unavailable to the general public.
Ladio, formerly CEO of MidCoast Community Bank, pleaded guilty to bank fraud and money laundering in December.
With today’s guilty plea we take another step forward in bringing to justice individuals whose criminal conduct contributed to the failure of Wilmington Trust," said Oberly in a statement. "Mr. Bailey’s participation in both conspiracies demonstrates an abuse of power and betrayal of public trust. Mr. Bailey’s underlying conduct of approving supplemental financing for failing borrowers contributed substantially to the Bank’s demise. His conduct, and that of others, further enabled the Bank to falsely underreport its level of nonperforming loans to federal regulators and the public by hundreds of millions of dollars throughout 2009.
Bailey faces up to 5 years in jail and a $250,000 fine for each count.