(Reuters) – A federal appeals court on Tuesday overturned the convictions of four former Wilmington Trust Co. executives accused of hiding from regulators the troubled loans on the company's books following the 2008 global financial crisis.
Former President Robert Harra, Chief Financial Officer David Gibson, Controller Kevyn Rakowski and Chief Credit Officer William North had been accused of underreporting Wilmington's "overdue" commercial real estate loans to the Federal Reserve and the Securities and Exchange Commission.
Prosecutors say the defendants wanted to make Wilmington's economy look better and enable it to raise $ 273.9 million in a February 201
"Needless to say, I'm disappointed," said U.S. Attorney David Weiss of Delaware, adding that the defendants may be tried again.
Wilmington was founded by the du Pont family in 1903. M&T Bank Corp., of Buffalo, New York, bought Wilmington in 2011 after credit losses caused Wilmington to sell at a fire selling price, 46% below market value.
Wilmington was indicted in 2016 under loan, becoming the first recipient of federal rescue money under the Troubled Asset Relief Program to be charged. It reached a settlement of $ 60 million in 2017.
The case is U.S. v. Harra et al., Third U.S. Circuit Court of Appeals, Nos. 19-1136. Catalog