Trial set to begin for former Wilmington Trust executives
(AP) — Four former executives of Wilmington Trust are set to go on trial on fraud charges.
Jury selection is scheduled to begin Monday in a case that led to the demise of the century-old DuPont-founded institution.
Federal prosecutors allege that bank executives hid more than $1 billion in delinquent loans from investors and regulators between 2008 and 2011 as the economy was going into a tailspin.
The now-defunct bank was purchased at a steep discount by Buffalo, New York-based M&T Bank. The sale cost shareholders billions of collars and cost Delaware hundreds of jobs.
In 2008, Wilmington Trust received $330 million from the federal government’s Troubled Asset Relief Fund. Prosecutors say the bank fraudulently flouted financial disclosure requirements.
The trial in U.S. District Court is expected to last about two months.