Joseph Terranova, a former bank official at Wilmington Trust Co. in Wilmington, Del., pleaded guilty to one count of conspiracy to commit bank fraud this week.
Christy Romero, special inspector general for the Troubled Asset Relief Program, released a statement, saying Terranova conspired to give credit to consumers under terms outside the established lending guidelines set up by the bank’s loan committee.
He allegedly carried this out while serving as vice president and division manager for the bank’s Delaware Commercial Real Estate Division.
Some of the loans were extended to real estate developer Michael Zimmerman, who is charged in a separate indictment.
Romero’s office in coordination with the U.S. Attorney for the District of Delaware claims Terranova conspired to hide the true financial condition of Wilmington Trust – a TARP recipient bank – by extending new loans to clients to help those clients stay current on existing loans.
SIGTARP says Terranova’s actions caused the bank to misrepresent its reporting of past due and non-performing loans.