- Associated Press - Thursday, September 11, 2014

DOVER, Del. (AP) — Federal regulators say Wilmington Trust has agreed to pay $18.5 million to settle charges of accounting and disclosure fraud regarding its loan portfolio.

The Securities and Exchange Commission said Thursday that Wilmington Trust, which was on the brink of collapse when it was hastily acquired by M&T Bank in 2011, failed to report the true volume of loans at least 90 days past due in 2009 and 2010.

Regulators say Wilmington Trust also failed to accurately disclose the amount of non-accruing loans in 2009 while understating its loan-loss provision and allowance for loan losses.

The failure of Wilmington Trust has led to an ongoing federal criminal investigation and indictments against several Delaware bank executives and real estate developers.

Shareholders also have filed a class-action lawsuit in federal court in Delaware.



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