In Brief: Judge Tosses Charges Against Va. Bank Execs

A U.S. District Court judge has thrown out all charges against the top management of Farmers Bank, Windsor, Va.

Richard J. Holland, chairman of the $79 million-asset bank, and his son Richard Jr., its president, were charged with making illegal loans to a local real estate developer in 1991 and 1992. The charges, filed by the state prosecutor's office, stem from a Federal Deposit Insurance Corp. investigation that led to a 1993 cease-and-desist order, which was terminated in 1994.

The bank was alleged to have made $500,000 in loans to a development firm that was already facing bank foreclosure on $1.6 million of loans outstanding.

The state's charges were dismissed in response to a motion by defense lawyers after the prosecution rested its case. The defense argued that there was not enough evidence to proceed with a jury trial.

"It ended the way it should have ended, with the court finding there was no case against us," the younger Mr. Holland said. "We said all along we had done nothing wrong, and that came out in court."

In a statement, Farmers' board of directors said it was "extremely pleased" with the verdict.

"We have always had complete confidence in the integrity of Richard and Dick Holland," the statement read, "and have always believed that a full presentation of all the facts would result in the exoneration of both."

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