Joseph L. Capano, 75, of Middletown, was sentenced Wednesday to 21 months in prison followed by 12 months of home confinement.
He pleaded guilty in March 2016 to one count of bank fraud and one count of knowingly violating the Clean Water Act.
Capano was also ordered to pay restitution of $685,419.32 to Cecil Bank, and to pay a fine of $50,000 for the environmental violation. Capano received a loan from Cecil Bank.
Cecil Bank has been under close supervision from regulators, due to a large number of bad loans.
The violations involved a residential development in the New New Castle area.
Capano is part of a well-known family that has long been involved in residential and commercial development in the state.
Capano faced up to 30 years of imprisonment and a $1 million fine for the bank fraud charge, and three years of imprisonment and a $250,000 fine for the Clean Water Act violation. Maximum penalties are rarely imposed.
Charges relate to Capano’s involvement with work on the Riverbend at Old New Castle, a development off of State Route 9, a release from the U.S. Attorney’s Office previously stated.
The long-running case related to water violations at the low-lying site.
