Ex-loan officer indicted on bribe, fraud counts Bank of Glen Burnie's loss put at $4.5 million

June 26, 1997|By Michael Dresser | Michael Dresser,SUN STAFF

A federal grand jury indicted a former chief loan officer at the Bank of Glen Burnie yesterday on charges that he accepted bribes in return for approving fraudulent loans to former trucking executive Brian H. Davis.

The 14-count indictment in Baltimore's U.S. District Court charged that Stephen G. Boyd of Glen Burnie received cash, gifts and vacation trips from Davis as part of a corrupt relationship that would eventually cost the bank an estimated $4.5 million.

Some of that money found its way into the campaign coffers of candidates supported by Davis, who contributed more than $250,000 to various politicians in Maryland and elsewhere over a five-year period.

The former president of Baltimore-based Oceanic Ltd. was sentenced last week to five years and three months in federal prison on bank fraud and tax evasion charges. Davis, who pleaded guilty in March, is expected to begin serving his sentence in August.

Boyd's indictment comes as a recent deposition in a civil lawsuit sheds new light on Davis' formerly cozy relationship with the Bank of Glen Burnie and the role he played in the 1994-1995 struggle for control of the institution.

The deposition, given by a private investigator who formerly worked for Davis, includes allegations that the former Oceanic chief executive may have bugged the bank's board room as part of a successful effort to oust the bank's former president, who was having Boyd investigated.

The detective also alleged in the deposition that Davis sought to arrange the burglary of a Baltimore law firm that was conducting that investigation.

Yesterday's indictment accuses Boyd, 57, of bank fraud, bank bribery and misapplication of funds.

The charges carry a theoretical maximum term of 30 years, but federal sentencing guidelines would likely call for a sentence well under 10 years.

Davis could not be reached for comment yesterday. Messages left on voice mail were not returned. Boyd declined to comment.

Approved loans

Yesterday's indictment charges that Boyd approved numerous loans to Davis, Oceanic and other Davis-related companies between 1992 and 1995.

The indictment also alleges that Boyd knowingly approved a series of "straw loans" to Davis associates in order to get around federal campaign limits.

Two of the loans allegedly passed on to Davis were made in the name of Michael Buchanan, a 1994 Republican nominee for the House of Delegates in Baltimore County's 11th District, the indictment states. Buchanan, who lost in the general election, received $3,380 in campaign contributions from Davis in that campaign. The two loans totaled $188,596.

Buchanan could not be reached for comment.

The indictment says that in return for approving the Davis loans, Boyd received gifts including sports memorabilia, tickets, gift certificates and golf lessons for Boyd's son.

Three counts of the indictment charge that Boyd took vacations at the expense of Oceanic: one to Pinehurst Golf and Country Club in North Carolina, valued at $1,077; one to the Villas of

Grand Cypress in Orlando, Fla., worth $2,020; and another to Walt Disney World, worth $2,145.

McCafferty's lawsuit

Court documents indicate that the dollar value of the gifts spelled out in the indictment might understate the actual scope of the alleged relationship.

In a recent deposition in a lawsuit brought by McCafferty's restaurant against the Bank of Glen Burnie, private investigator John E. Pugh testified that Davis told him in late 1995 that he had paid hundreds of thousands of dollars' worth of bribes to Boyd.

Pugh also stated that he provided Davis with bugging equipment that Davis intended to place in the bank's boardroom in order to eavesdrop on Jan Clark and Henry L. Hein, the bank's former president and chairman.

Clark and Hein, who fired Boyd in February 1995, were ousted the following month by a Davis-supported group that later rehired Boyd.

Boyd was fired again in early 1996 after Davis' scheme to obtain multiple loans using fraudulently obtained duplicate truck titles was exposed in late 1995.

Pugh also said that Davis offered him $2,000 to break into the law offices of Piper & Marbury to "get the files on Stephen Boyd." The private investigator said he turned down the offer and did not know whether the burglary was carried out.

According to Pugh, Davis' relationship with Bank of Glen Burnie officials gave the trucking executive unusual influence over the bank's internal affairs.

"He practically told the Bank of Glen Burnie what he was going to do, how he was going to do it and it just went over that way," Pugh said.

"You would think he was more the president of the bank than just a person who had accounts at the bank. It wouldn't surprise me anything that came out of the bank that Brian couldn't get a copy of."

Pub Date: 6/26/97

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