Arney pleads guilty, will cooperate in bank-fraud case | HamptonRoads.com | PilotOnline.com
Arney admitted in U.S. District Court that he conspired with Bank of
the Commonwealth executives to defraud the bank of millions in loans.
Those defaulted loans contributed to more than $150 million in losses
that caused the bank to fail.
Arney, 56, of Chesapeake, pleaded guilty to three counts: conspiracy
to commit bank fraud, unlawful monetary transaction and making a false
statement on loan documents. The maximum penalty is 20 years in prison.
Arney was indicted in July along with Bank of the Commonwealth's
former president and chief executive, Edward J. Woodard Jr.; Woodard's
son, T. Brandon Woodard, and former bank vice presidents Stephen Fields
and Simon Hounslow.
The executives are accused of enabling a massive Ponzi scheme that
cost the Norfolk-based bank tens of millions of dollars and ultimately
led to its collapse. The former executives, as well as another
developer, Dwight Etheridge, are scheduled to stand trial in January.Arney is scheduled for sentencing Dec. 3 and remains free on bond.
Gee I wonder if he will have a mysterious heart attack and die before his sentencing.
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