The Times Herald (Norristown, PA) - - BUSI­NESS -

told ju­rors. “The ev­i­dence will show that this is a dis­pute about re­port­ing.”

Pros­e­cu­tors al­lege that Wilm­ing­ton Trust con­cealed the quan­tity of past due loans on its books from Oc­to­ber 2009 through Novem­ber 2010. Specif­i­cally, au­thor­i­ties say Wilm­ing­ton Trust failed to dis­close to reg­u­la­tors its prac­tice of “waiv­ing” matured loans des­ig­nated as cur­rent for in­ter­est and in the process of be­ing ex­tended from the re­port­ing re­quire­ments for past due loans.

In the fourth quar­ter of 2009, for ex­am­ple, Wilm­ing­ton Trust of­fi­cials re­ported that only $10.8 mil­lion in com­mer­cial loans were 90 days or more past due, con­ceal­ing more than $316 mil­lion in past due loans sub­ject to the waiver prac­tice, Wolf said.

Wolf told ju­rors that af­ter an Oc­to­ber 2009 meet­ing to dis­cuss ma­ture loans and “how to make them go away” by year’s end, bank of­fi­cials de­cided on a “mass ex­ten­sion.” That, she said, in­volved tem­po­rar­ily ex­tend­ing more than 800 com­mer­cial loans worth $1.3 bil­lion.

Dur­ing that same pe­riod, North sent an email to Harra in De­cem­ber 2009 re­fer­ring to cer­tain loans as “credit turds.”

Kelly, the de­fense at­tor­ney, told ju­rors that Wilm­ing­ton Trust had en­gaged in the loan waiver prac­tice long be­fore the pe­riod in ques­tion, and that it was no se­cret to fed­eral bank ex­am­in­ers. He also noted that for­mer Wilm­ing­ton Trust chair­man and CEO Ted Ce­cala, who has not been charged in the case, served on the board of the Fed­eral Re­serve Bank of Philadel­phia dur­ing the time of the al­leged con­spir­acy.

Three other for­mer Wilm­ing­ton Trust of­fi­cers, vice pres­i­dent Joseph Ter­ra­nova, Delaware Mar­ket Of­fi­cer Brian Bai­ley, and loan of­fi­cer Peter Hayes have pleaded guilty in the case and are await­ing sen­tenc­ing. Bai­ley and Ter­ra­nova are ex­pected to tes­tify for the pros­e­cu­tion at the trial of their for­mer col­leagues.

Two other co-con­spir­a­tors al­ready have been sen­tenced. James La­dio, for­mer CEO of MidCoast Com­mu­nity Bank, was sen­tenced to two years in prison and or­dered to pay $700,000 resti­tu­tion. Busi­ness­man Sal­va­tore Leone was sen­tenced to a year and a day in prison and or­dered to pay $784,000.

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