Wednesday, November 25, 2015

Another Delaware banker indicted

Ex-Wilmington Trust exec Bailey faces fraud, bribery, money laundering charges

Another Delaware banker indicted

Photo from
Photo from

Brian D. Bailey, former head of Delaware banking for the defunct Wilmington Trust Corp., once Delaware's largest bank, was indicted today on bribery, fraud and money laundering charges in Delaware federal court. According to federal prosecutor Charles Oberly, Bailey and former Artisans Bank chief lending officer and MidCoast Bank chief executive officer James Ladio, who pleaded guilty to fraud charges in December, lent each other more than $1.5 million in personal loans illegally disguised to look like business loans. Bailey's lawyer didn't immediately return a call seeking comment.

According to the indictment, the loans were discovered as Wilmington Trust began collapsing under the weight of $1 billion in bad loans in 2010. Bailey resigned and was hired by Ladio as a MidCoast loan officer; MidCoast lent Bailey additional money, also under false pretences, the government says,  to help him pay back his Wilmington Trust loans. Wilmington Trust was purchased by M&T Bank at a deep discount share price, and more than 700 workers laid off. 

MidCoast had agreed to be purchased by Bryn Mawr Trust Co. last year, but the deal blew up when Ladio unexpectedly resigned, prior to his indictment. Bailey resigned from MidCoast when a former Wilmington Trust colleague, Joseph Terranova, pleaded guilty to bank fraud in a case that raised questions about the conduct of Bailey and other former Wilmington Trust colleagues.

In other cases, Wilmington Trust borrowers and lenders have been charged with fraud for conspiring with corrupt borrowers since then, but prosecutors have spared the senior bank executives who failed to notice the multiple frauds committed on their watch.

We encourage respectful comments but reserve the right to delete anything that doesn't contribute to an engaging dialogue.
Help us moderate this thread by flagging comments that violate our guidelines.

Comment policy: comments are intended to be civil, friendly conversations. Please treat other participants with respect and in a way that you would want to be treated. You are responsible for what you say. And please, stay on topic. If you see an objectionable post, please report it to us using the "Report Abuse" option.

Please note that comments are monitored by staff. We reserve the right at all times to remove any information or materials that are unlawful, threatening, abusive, libelous, defamatory, obscene, vulgar, pornographic, profane, indecent or otherwise objectionable. Personal attacks, especially on other participants, are not permitted. We reserve the right to permanently block any user who violates these terms and conditions.

Additionally comments that are long, have multiple paragraph breaks, include code, or include hyperlinks may not be posted.

Read 0 comments
comments powered by Disqus
About this blog

PhillyDeals posts interviews, drafts and updates that Joseph N. DiStefano writes alongside his Sunday and Monday columns and ongoing articles about Philadelphia-area business.

DiStefano studied economics, history and a little engineering at Penn. He taught writing and research at St. Joe’s. He has written for the Inquirer since 1989, except when he left a few times to work at Bloomberg and elsewhere. He wrote the book Comcasted, and raised six kids with his wife, who is a saint.

Reach Joseph N. at, 215.854.5194, @PhillyJoeD. Read his blog posts at and his Inquirer columns at Bloomberg posts his items at NH BLG_PHILLYDEAL.

Reach Joseph at or 215 854 5194.

Joseph DiStefano
Also on
letter icon Newsletter