NORFOLK, Va. — A businessman has pleaded guilty to participating in a fraud scheme that prosecutors say led to the Bank of the Commonwealth’s failure.
Media outlets report that 52-year-old Eric H. Menden pleaded guilty Friday in federal court in Norfolk to conspiracy to commit bank and wire fraud, and making a false statement.
A plea agreement calls for Menden to testify against his business partner, 47-year-old George P. Hranowskyj. Hranowskyj faces wire fraud and other charges.
Prosecutors say the scheme involved fake claims for historic tax credits on properties owned by the men and fraudulent bank loans.
The bank closed in 2011.
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