Wilmington Trust loses bid to force ex-executive to testify

(AP) — A federal judge has refused to force a former Wilmington Trust official to testify in a shareholder lawsuit stemming from the bank’s collapse.

The judge last week denied Wilmington Trust’s motion to compel deposition testimony from Joseph Terranova, who is awaiting sentencing after pleading guilty to conspiracy to commit bank fraud.

Terranova gave a videotaped deposition in April in the shareholder lawsuit, but he invoked his Fifth Amendment rights when asked for details described in his plea agreement.

The judge upheld Terranova’s refusal to answer certain questions, noting that information being sought by Wilmington Trust attorney could support charges for additional crimes beyond those identified in his guilty plea.

Prosecutors say Wilmington Trust concealed the truth about its deteriorating commercial real estate loan portfolio before the bank’s collapse in 2011.

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