Virginia Beach Mayor and President of Towne Bank Will Sessoms testified Tuesday in the corruption case of former Virginia Governor Bob McDonnell and his wife Maureen, that the couple failed to disclose $120,000 in outstanding loans when refinancing a mortgage in 2012. Those outstanding loans came from Jonnie Williams, the former CEO of Star Scientific, who was actively soliciting the Governor and his wife to use their positions to advance a dietary supplement, Anatabloc. Sessoms testified that the McDonnells were late on mortgage payments for their two struggling beach rental properties 47 times between 2009 and 2013.
Virginia State Trooper Charles Hagan testified that during his initial interview with Mrs. McDonnell, she said there was a written agreement with Williams, contrary to prior statements to investigators by the Star CEO.
Federal prosecutors say the McDonnell’s omission of the Williams loans on the form amount to knowing and willing bank fraud.