Former Wilmington Trust execs won't get life sentences
Four former Wilmington Trust executives convicted in a federal fraud trial earlier this year will not receive life sentences.
Delaware’s federal prosecutor, David Weiss, has agreed to seek lesser sentences for Robert Harra, David Gibson, William North and Kevyn Rakowski.
In a letter to U.S. District Judge Richard Andrews released Wednesday as part of a sentencing hearing, Weiss and defense attorneys agreed to a revised sentencing guideline calculation that knocks down the amount of possible jail time.
Under the new guidelines, Harra and Gibson likely face a minimum of nine years and a maximum of just over 11 years in jail. North and Rakowski will likely face between 8 and 9 years.
The four were convicted in May of over a dozen counts of fraud, conspiracy and making false banking record entries connected to toxic loans that led to Wilmington Trust’s demise.
Judge Andrews has now scheduled sentencing for mid-December.
The case is the only one where bankers who received federal bailout money in the wake of the 2008 financial crisis faced criminal sanctions. Wilmington Trust received $330 million dollars from the federal TARP program.
It was eventually sold to M&T Bank in 2011.