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Federal prosecutors ask for another chance to prove Wilmington Trust execs guilty

Sophia Schmidt/Delaware Public Media

Prosecutors want another shot at proving former executives of a Wilmington bank guilty of wrongdoing during the Great Recession. 

Four former Wilmington Trust executives were convicted of conspiracy and fraud in 2018 during one of the only criminal cases connected to the 2008 financial crisis and misuse of federal bailout money. 

Each was sentencedto several years in prison. But a federal appeals court overturned their convictions early this year.

Federal prosecutors filed a petition for a panel rehearing last week. They’re requesting the Court clarify the legal standard for falsity that was at issue in the appeal and change its earlier decision — and allow some of the counts to be tried again.  

Former President Robert Harra, Chief Financial Officer David Gibson, Controller Kevyn Rakowski and Chief Credit Officer William North were accused of concealing some of the bank’s overdue commercial real estate loans to federal regulators. The bank received $330 million in federal bailout money.

The “toxic” loans led to Wilmington Trust being sold off to M&T Bank in 2011.

Wilmington Trust Filing Retry 3-25-21 by Delaware Public Media on Scribd

Sophia Schmidt is a Delaware native. She comes to Delaware Public Media from NPR’s Weekend Edition in Washington, DC, where she produced arts, politics, science and culture interviews. She previously wrote about education and environment for The Berkshire Eagle in Pittsfield, MA. She graduated from Williams College, where she studied environmental policy and biology, and covered environmental events and local renewable energy for the college paper.
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