Ex-banker admits he took bribes Boyd, as an executive of Bank of Glen Burnie, OK'd loans to Davis

Free vacations, cash

Davis, now in jail, used others' names, procured millions

November 27, 1997|By Michael James | Michael James,SUN STAFF

The former senior vice president of the Bank of Glen Burnie pleaded guilty yesterday to accepting bribes from a Baltimore trucking executive who illegally used the bank to procure more than $6 million in loans.

Stephen G. Boyd, 57, approved the loans from the bank in exchange for bribes that ranged from sports tickets to cash to a trip to Disney World, according to his plea agreement filed in U.S. District Court in Baltimore.

Boyd admitted in court that he had been bribed by Brian H. Davis, a trucking company owner whose lavish campaign contributions bought him entry into Maryland's highest political circles.

Davis pleaded guilty in June to bank fraud and tax offenses and is serving a 63-month federal sentence.

Between 1992 and 1995, Boyd extended the loans to Davis and his related companies, which included a meat distribution firm -- and McCafferty's, a Mount Washington restaurant in which he was a partner, said Assistant U.S. Attorney Dale P. Kelberman.

In return for approving the loans, Boyd, who was then in charge of the bank's loan and investment portfolio, would sometimes receive unspecified amounts of cash.

He also received sports memorabilia, golf lessons for his son, $900 worth of kitchen appliances and several vacations, court papers said.

The vacations, worth more than $1,000 each and paid for by Davis' trucking firm, Oceanic Ltd., included trips to Pinehurst Country Club in North Carolina and Disney World in Orlando, Fla., court papers said.

When Davis approached his borrowing limit at the bank, Boyd agreed to make "straw loans" to people whose names Davis provided, the court papers said. Once the individual received the loan, the money would be transferred to Davis or one of his companies.

Prosecutors identified one of the alleged straw borrowers as Michael J. Buchanan, an unsuccessful Republican candidate for the Maryland House of Delegates from Baltimore County's 11th Dis- trict in 1994. Buchanan was named in a written statement of facts presented in court yesterday.

Boyd, a Glen Burnie resident, resigned from the bank in early 1996. Bank officials estimate their losses from the scheme at more than $6 million.

His guilty plea yesterday came as he appeared ready to go through with his trial.

The jury in the case had been selected just two days ago, prosecutors said.

Boyd is to be sentenced Jan. 15 on one count of bank bribery, a felony which carries a maximum penalty of 30 years in prison and a $1 million fine.

The conviction comes as prosecutors continue to lodge more charges against Davis.

Last week, they charged him with a scheme to use credit cards he allegedly obtained in the name of an acquaintance.

He also had been charged by state prosecutors with three counts of violating state election laws for contributing $68,500 to political campaigns under false names and exceeding the state's $10,000 limit on political campaign contributions during a four-year election cycle.

An investigation by The Sun last year detailed more than $250,000 in state and federal campaign contributions made by Davis over five years.

The newspaper's investigation showed Davis gave much of that money using the names of relatives without their permission.

Davis has said he used some of the illegal loans to help pay for those contributions. He is currently imprisoned in the Federal Correctional Institution in Cumberland.

Pub Date: 11/27/97

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