Testimony aims at ex-banker’s real estate investments [The Virginian-Pilot]

March 29--NORFOLK -- As a mortgage broker for a Bank of the Commonwealth subsidiary, T. Brandon Woodard frequently flouted policies and turned to his father, the bank president, for assistance, witnesses testified Thursday. But they said they could not pinpoint any illegal activity.

Thursday's testimony by several witnesses in the federal trial of former bank executives focused on the younger Woodard's activities with the subsidiary and as an independent real estate investor. He's accused of defrauding the bank through some of his real estate investments.

Jed Sherman, a friend and former business partner of Brandon Woodard, said the two set out to become real estate investors in 2005. They had met at the Norfolk Yacht and Country Club, where the Woodards were members and Sherman worked as the fitness director.

They turned to Edward J. Woodard Jr., Brandon's father, for advice.

"Overall, indifferent, I suppose," Sherman said was the elder Woodard's reaction. "Not overly joyous, but he didn't object."

Over the next few years, their company, W.S. Summit Realty, obtained $1.2 million to $1.4 million in loans, mostly from Bank of the Commonwealth, to buy, renovate and resell properties, which Sherman agreed was commonly known as "flipping" houses. They did this with little credit, no money down and not having to pay fees, witnesses said.

They bought properties in Norfolk and Virginia Beach and later branched out to Lexington and Birmingham, Ala. They made a little money in the beginning but as the real estate market began to collapse, W.S. Summit ended up like most property investment companies -- unable to sell.

Sherman admitted that he sometimes had to use proceeds from one loan to pay off another, something prosecutors allege was rampant among the bank executives charged in the case. But he could not say whether Brandon Woodard ever did that.

In 2008, Sherman pressed his partner to lean on his father, the bank president, for help. Brandon Woodard refused.

"I am very, very sorry but I can't engender my father's career or mine to do this," the younger Woodard wrote to Sherman in an email introduced at the trial.

But Brandon Woodard acknowledged in the same email: "Some of this mess is due to us having been given these loans at all since none of us could qualify for them."

On cross-examination, Sherman said all of the Bank of the Commonwealth loans had been paid back in full and that they ended the venture having made only $25,000 to $30,000 in profit.

Sherman was also asked whether Brandon Woodard ever "said anything untruthful to get a loan."

"Not that I know of," Sherman said.

Other witnesses were not as kind to Brandon Woodard.

Michele Moyers, a former employee of a title insurance subsidiary of the bank, said Brandon Woodard gave her a stern lecture when she refused his request to waive settlement fees.

"He could become verbally abusive," she said. "Brandon told me that apparently I didn't know who I was speaking with and that he would take it up with his father."

The Woodards and former bank vice presidents Simon Hounslow and Stephen Fields face various counts of bank fraud and related charges in the ongoing trial in U.S. District Court. They are accused of defrauding the bank out of $71 million, helping cause its collapse in September 2011.

Businessman Dwight Etheridge is also on trial accused of participating in a loan scheme.

The trial will continue Monday.

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