Business of Banking
Wed August 13, 2014
McDonnell Corruption Trial
The prosecution is close to wrapping up its arguments in the federal trial of former Governor Bob McDonnell and his wife, Maureen.
This time it focused primarily on how the former governor allegedly lied on mortgage refinance applications to cover up the loans given to him and the former first lady by ex-Star Scientific CEO, Jonnie Williams.
Prosecutors questioned Nanette Bolt, the mortgage loan supervisor for PenFed Bank. The McDonnells were in the process of securing nearly a million dollars in loans to refinance four properties.
While there was a lengthy back-and-forth between McDonnell and Bolt, prosecutors allege that the former governor blatantly omitted a 70-thousand and 50-thousand dollar loan. An intentional omission would be a felony. They say McDonnell tried to amend the form only after his wife was interviewed by State Police investigators.
The defense argues that McDonnell had a constant dialogue about the loans with Bolt and was never hiding anything because the form was labeled as preliminary. The defense adds that McDonnell had also amended the application to include additional assets, such as an IRA, and that he wanted to make sure that the loans were included in the document before submitting the closing bank application.
The defense is expected to begin making its case on Monday.