Delaware developer pleads guilty to bank fraud, other charge
A Delaware developer could face up to 33 years in prison and about $1.25 million in fines after he pleaded guilty on Monday of knowingly violating the Clean Water Act, along with one count of bank fraud.
According to Christy Goldsmith Romero, Special Inspector General for TARP, from October 2007 until August 2008, Joseph L. Capano, 73, obtained commercial loans from Cecil Bank, and then illegally transferred the money to bank accounts of other affiliated companies so he could take the money for his personal use.
During the construction of the Riverbend at Old New Castle development, Capano also reportedly knowingly violated rules about developing on wetlands.
In one instance, dating back to December of 2007, Capano reportedly obtained $300,000 from the bank, for what he claimed were various Riverbend Development expenses.
According to the Department of Justice, instead of using those funds for development expenses, Capano used some of the funds for personal expenses, including approximately $63,000 to pay for a jewelry purchase.
The DOJ also states that Capano knowingly discharged pollutants into wetlands without a permit during the Riverbend Development, directing contractors and employees to place a water main pipe through the causeway wetlands area, despite being told not to do so.
He reportedly faces up to 30 years and $1,000,000 in fines for the bank fraud charge, and three years and $250,000 in fines for the Clean Water Act violation.
