Founder of Delaware bank pleads guilty to fraud

December 17, 2013 4:01:46 PM PST
Federal prosecutors say the founder and former president of a community bank has pleaded guilty to bank fraud and money laundering.

Fifty-seven-year-old James A. Ladio of Wilmington entered the pleas Tuesday in federal court in Delaware. He faces a maximum penalty of 30 years imprisonment and a $1 million fine at sentencing in April.

According to his plea agreement, Ladio was the founder and president of of MidCoast Community Bank, which had four branches in the state. Prosecutors say Ladio convinced customers to obtain loans and lend the proceeds to him.

Authorities say one customer got a line of credit from MidCoast and wired more than $630,000 to Ladio's personal checking account.

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