Feb. 26 deadline to repay $120,000

Bank restitution delays sentencing

Chief U.S. District Judge Brian Miller on Thursday postponed sentencing Albert Solaroli for money laundering and gave him until Feb. 26 to pay One Bank & Trust $120,000 in restitution.

Miller agreed to let Solaroli, a Canadian citizen, travel to Canada to raise the money.

Before approving defense attorney Omar Greene's request for the additional time, Miller said he was offended that people of means could steal money, then return it if they were caught and escape prison time as a result.

Miller, who said he had served on three bank boards, said he was sure One Bank's board of directors was "mad as hell" that Gary Rickenbach, the bank's former senior executive vice president, would get probation rather than prison time on charges related to Solaroli's case.

Rickenbach entered a conditional guilty plea in November to a charge of misprision of a felony, or of being aware of a crime but failing to report it. U.S. District Judge Kristine Baker took the plea under advisement. If she accepts it, Rickenbach's original charges of conspiracy, bank fraud, aiding and abetting a false bank entry and making a false statement will be dropped and he will receive two years' probation.

Miller asked Stewart Headlee, an attorney for One Bank, what the Little Rock bank's board would consider justice in Solaroli's case.

"I believe they would want a strict sentence," Headlee replied.

Solaroli got a $1.5 million line of credit from One Bank in 2007, according to prosecutors. Rickenbach recommended approval of the line of credit and arranged for it to be approved without going through the bank's regular channels, according to the information charging Rickenbach.

Solaroli, who lived in Jacksonville, Fla., at the time, listed his net worth as $169 million, which he later admitted was false. He was indicted in 2013 on charges of bank fraud and faced up to 30 years in prison and a fine of more than $1 million.

In April, Solaroli agreed to plead guilty to money laundering involving a $120,000 wire transfer from One Bank & Trust to a Florida bank. Those charges carried an initial sentence of not more than 10 years in prison and not more than a $250,000 fine.

A presentencing report prepared by the U.S. Probation Office found that Solaroli had no criminal history and said he qualified for a prison sentence of 12-18 months, supervised release and a fine.

Greene asked that the judge not impose prison time. Saying that Rickenbach, an insider at the bank, was unlikely to receive a prison sentence, Greene argued it would be unfair to imprison Solaroli. Greene said Solaroli had cooperated with prosecutors and was prepared to testify against Rickenbach had the former bank executive gone to trial. He also noted Solaroli is 61 and said he has developed health problems since being indicted.

Greene also asked that Solaroli be allowed to serve any probation in Canada, where he said the businessman was trying to rebuild his finances.

Under questioning from Miller, Solaroli said his business in the U.S. had collapsed following his indictment. He said he had no choice but to return to Canada where he could work with associates who have known him for many years.

Solaroli has represented himself as owner of patents for technology related to a more efficient combustion engine. He said in court Thursday that he has done work with Audi and had a deal in the works with Jaguar. Solaroli declined after court to elaborate on his business plans.

During the hearing, Miller noted that Solaroli had not paid any restitution to date and asked how long it would take him to come up with $120,000. Solaroli responded that he could do it in 30 days.

First Assistant U.S. Attorney Pat Harris expressed skepticism, saying Solaroli had filed for bankruptcy four times. But Harris said he did not object to giving Solaroli until Feb. 26 to try to raise the money.

Federal regulators have scrutinized One Bank for several years and issued sanctions, including a 2012 order demanding that Layton Stuart resign as chairman and chief executive officer. Stuart died in March 2013.

In December, Baker dismissed money-laundering conspiracy charges against Tom Monroe Whitehead, the bank's former chief financial officer, at Harris' request. Harris said at the time that Whitehead had agreed to testify against his co-defendants, Michael Francis Heald and Bradley Stephen Paul.

Heald, the bank's former chief operating officer, faces two conspiracy charges and two charges of making false bank entries to deceive regulators. Paul, a former executive vice president at the bank, faces the same charges. Their trial is set for May.

Business on 01/22/2016

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