MidCoast Community Bank’s former chief executive officer, James A. Ladio, pleaded guilty in federal court in Wilmington, Delaware, to charges of fraud and money laundering.
Ladio, 57, a founder of the four-branch institution in Delaware six years ago, was accused of facilitating loans of about $700,000 each to two unnamed customers, then borrowing most of the money from them for his own use, according to a charging document made public today by U.S. Attorney, Charles M. Oberly III.
Ladio, who was fired by the bank on Aug. 24, schemed to get money from MidCoast “by means of materially false or fraudulent pretenses or promises,” according to court papers.
At his sentencing April 17, Ladio faces a maximum of 80 years in prison and fines of more than $2 million, U.S. District Judge Richard Andrews told him today, adding, “I’ve never sentenced anyone to more than the maximum.”
MidCoast, with about $500 million in loans and deposits, was scheduled to be bought by the parent of the 27-branch Bryn Mawr Trust Co. of Pennsylvania for about $33 million, according to a March statement. In August, Bryn Mawr terminated the merger plan without giving a reason, according to an industry report.
In the initial announcement, Ladio said affiliating with Bryn Mawr would help MidCoast “grow and serve our customers” in the area.
The case is U.S. v. Ladio, 13-cr-00113, U.S. District Court, District of Delaware (Wilmington).
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