Two former bank executives accused of fraud in the failed Ramsey Town Center project have reportedly struck a deal to plead guilty to a lesser charge.
William Garfield Sandison and his son, Ross William Sandison, are scheduled for a "change of plea" hearing on Aug. 26.
They now face one count of conspiracy related to bank fraud, court records show.
"We've resolved our differences," said attorney Paul Engh, who represents Ross Sandison. A judge will decide at the hearing whether to accept the plea.
The Sandisons and another former Community National Bank executive, Curtis Alan Martinson, were indicted in April on charges ranging from conspiracy to mail fraud, misapplication of bank funds and money laundering. William Sandison is the former president of the bank and Ross Sandison was a vice president.
According to the 29-count federal indictment, they solicited $35 million in loans from 20 banks for the Ramsey Town Center project. The executives allegedly diverted some of that $35 million to repay their own loans without telling the banks involved in the project.
The banks lost more than $20 million, and the Ramsey Town Center defaulted on the $35 million loan.
The project was envisioned as the crown jewel of the north metro suburbs, a 322-acre project featuring 2,800 housing units, shops, 25 acres of park land and a transit station serving the future Northstar Commuter Rail.
