Delaware Banker Faces 5-Years in Jail

A formerrnsenior official at Wilmington Trust Company, Wilmington, Delaware has pleadedrnguilty to one count of conspiracy to commit bank fraud according to the SpecialrnInspector General for the Troubled Asset Relief Program (SIGTARP.)  Joseph Terranova, who faces a maximum penaltyrnof five years in jail and a $250,000 fine, had been the vice president andrndivision manager of the banks Delaware Commercial Real Estate Division.  Wilmington Trust Company was a recipient ofrnTARP funds.</p

According tornthe criminal complaint and plea agreement Terranova conspired to extend credit</bto customers of the bank under terms that were not consistent with thosernapproved by the bank's Loan Committee or which would not have been approved hadrnthe Committee been presented them. Among the questionable loans were some tornDover Delaware real estate developer Michael Zimmerman who has been chargedrnunder a separate indictment.  Terranovarnis also alleged to have conspired to conceal the bank's true financialrncondition by extending new loans to customers who used the funds to maintain existingrnloans, causing the bank to misrepresent past due and non-performing loans onrnits books </p