A former Wilmington Trust executive has been indicted on federal bank fraud, conspiracy and money laundering charges for allegedly scheming with another bank executive to illegally lend money to each other.
The charges against Brian D. Bailey were outlined in an indictment returned Tuesday and unsealed by federal prosecutors Wednesday. Authorities allege that Bailey and James A. Ladio made roughly two dozen loans and loan modifications in excess of $1.5 million to each other over a course of about 12 years.
Ladio, a former Artisans Bank executive who later served as president and CEO of MidCoast Community Bank, pleaded guilty to bank fraud and money laundering in December.
Authorities say the two men arranged commercial loans and credit lines for each other to pay off personal debts.