WILMINGTON, Del. (AP) - A former Wilmington Trust executive accused of scheming with another bank executive to make improper loans to each other from their respective banks has pleaded not guilty to fraud, conspiracy and money laundering charges.
Fifty-one-year-old Brian Bailey was arraigned Wednesday. Bailey's lawyer entered a plea of not guilty on his behalf.
Bailey is a former vice president and Delaware market manager for Wilmington Trust, which was sold to M&T Bank in 2010 after its deteriorating loan portfolio left it on the verge of collapse.
Authorities allege that Bailey and James Ladio made roughly two dozen loans and loan modifications to each other over several years.
Ladio is a former executive of Artisans Bank and MidCoast Community Bank. He pleaded guilty to bank fraud and money laundering and is awaiting sentencing.
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