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February 23, 2010 Tuesday
Report: Former exec of failed Bank of Clark County enters guilty plea
The former chief lending officer of Vancouver, Wash.-based Bank of Clark County faces a maximum punishment of five years in prison and a fine of $250,000 in a scheme to hide loan details from regulators. His plea agreement said the bank’s CEO was aware of serious problems months before the bank’s shutdown.
The former chief lending officer of the collapsed Vancouver, Wash.-based Bank of Clark County has pleaded guilty to a felony charge and is scheduled to be sentenced May 14, the Portland (Ore.) Business Journal reported Feb. 19.
David Kennelly faces maximum punishment of five years in prison and a fine of $250,000, the report said.
Kennelly pleaded guilty on the charge of a “scheme to conceal material facts,” the publication reported, citing a plea agreement filed in U.S. District Court.
Kennelly said in his plea agreement that bank CEO Michael Worthy was aware 10 months before the collapse that the business might be doomed because of rapidly falling property values.
Though it is unclear whether Worthy knew about Kennelly’s scheme, the lending officer said at least five bank employees had knowledge about the concealment of loan details from the FDIC and state regulators, the report said, citing court papers. No other bank employees have been charged in the matter, the newspaper reported.
March 1, 2010