Developer denies charges Shilling pleads not guilty to embezzlement.

January 08, 1992|By Kelly Gilbert | Kelly Gilbert,Evening Sun Staff

Baltimore-area developer John W. Shilling Jr. has pleaded not guilty to a federal charge of bank embezzlement tied to the alleged theft of $534,207 from four limited partnerships linked to the failed First Federal Savings Bank of Annapolis.

Shilling, 49, of Reisterstown, entered the plea yesterday to Judge Frederic N. Smalkin in U.S. District Court in Baltimore.

Smalkin set a March 2 trial date.

Shilling was charged last month in a one-count criminal information document.

The charging document said Shilling, owner of Crown Development Corp. in Lutherville and several other development companies, embezzled the money in 1989 and 1990 while his firm was a general partner in four limited partnerships with Delta Financial Inc., a First Federal subsidiary.

Delta obtained the money through loans from the bank, the document said.

The limited partnerships were formed to acquire land and develop real estate projects in Baltimore County. In effect, Shilling was in partnership with the bank in the development projects and, as general partner, controlled the limited partnerships' checkbooks.

Kelberman alleged that Shilling funneled the stolen money into "other business interests, including paying salaries to himself."

The FBI was tipped to the alleged embezzlement by the bank and regulatory agencies about the time that the Office of Thrift Supervision took over now-defunct First Federal in 1990.

Baltimore Sun Articles
Please note the green-lined linked article text has been applied commercially without any involvement from our newsroom editors, reporters or any other editorial staff.