Not guilty pleas for former BOC execs

NORFOLK, Va. (WAVY) - Four former Bank of the Commonwealth executives and two others accused in an alleged scheme to commit bank fraud have entered not guilty pleas.

Former Chief Executive Officer Edward Woodard, former Executive Vice President Simon Hounslow, former Executive Vice President Stephen Fields, former Vice President and Mortgage Specialist Troy Woodard, Thomas Arney and Dwight Etheridge entered not guilty pleas on the following charges:

• One count of conspiracy to commit bank fraud
• Seven counts of false entry in a bank record
• Seven counts of false statement to a financial institution
• Four counts of unlawful participation in a loan
• Two counts of bank fraud
• Four counts of misapplication of bank funds

Document: Grand Jury Indictment

According to the grand jury, bank officials hid the bank’s true financial condition by overdrawing demand deposit accounts to make loan payments, using funds from related entities without authorization of the borrower to make loan payments, using change in terms agreements to make loans appear current and extending new loans or additional principal on existing loans.

The bank then allegedly provided preferential financing to troubled borrowers in order to buy property owned by the bank. The indictment said those borrowers already had trouble making loan payments.

The indictment further details exactly how the six defendants conspired to commit bank fraud and can be found by clicking here .

George Hranowskyj, who was previously indicted in connection to the alleged scheme , pled guilty to bank fraud and wire fraud Wednesday. He will be sentenced Oct. 15 and faces a combined maximum sentence of 25 years in prison.

If convicted, each defendant will be forced to forfeit property and assets, all of which is also listed in the indictment.

Stay with WAVY.com for more on this developing story.