WILMINGTON, Del. >> Four former executives for the only financial institution to be criminally charged in connection with the federal bank bailout program have been convicted on fraud and conspiracy charges.
Jurors found the former Wilmington Trust executives guilty today after a six-week trial.
Prosecutors alleged that in the wake of the 2008 financial crisis, the defendants misled regulators and investors about Wilmington Trust’s massive amount of past-due commercial real estate loans before the bank was hastily sold in 2011.
The century-old bank imploded despite receiving $330 million from the federal Troubled Asset Relief Program.
Defense attorneys argued that the “waiving” of millions of dollars in matured loans from reporting requirements for past due loans was appropriate because the loans were designated as current for interest and in the process of being extended.