
DATE: Sunday, September 28, 1997            TAG: 9709280044

SECTION: LOCAL                   PAGE: B1   EDITION: FINAL 

SOURCE: BY LOUIS HANSEN AND LINDA MCNATT, STAFF WRITERS 

DATELINE: WINDSOR                           LENGTH:  104 lines

INDICTMENT OF SENATOR AND SON SETS TOWN ABUZZ MANY - BUT NOT ALL - IN WINDSOR PROCLAIM SUPPORT FOR HOLLANDS

At the Dairy Queen on U.S. Route 460, the breakfast order of the day was biscuits, eggs and news.

On Saturday, the news had a home-grown flavor.

State Sen. Richard J. Holland and his son, Richard Jr., known around town as ``Dick,'' had been indicted Friday on 31 felony counts for allegedly lying to federal investigators and breaching their duties as executives of the town's only bank.

``Looks like Mr. Holland's got himself in some trouble,'' Ray Lee said as he stepped up to the cash register.

The buzz filled the room, as a group of retirees and regulars gathered at tables with the morning newspaper and its headline: ``State senator indicted in Windsor bank fraud.''

Miles M. ``Hed'' Saunders, 81, remembered how the bank helped him manage his wife's estate after she died. He trusts the Hollands and would still vote for the senator.

``That's how much confidence I have in him,'' Saunders said. ``He'll do you a favor. Either of them will do you a favor.''

Federal investigators allege that the Hollands - the senator as chairman of the board and his son as president of Farmers Bank of Windsor - made illegal loans to a Suffolk developer to prop up a failing portfolio that included the Atlantic Film Studio.

The Suffolk studio never realized its billing as ``Hollywood East,'' and other developments planned around it failed to get off the ground.

In the federal indictment, prosecutors charge that the Hollands back-dated illegal loans and placed the bank's financial security at risk by lending almost $2 million to Dr. Lloyd March, a retired Suffolk dentist and land developer, and a partnership, Oceans Holdings Inc.

Oceans was a partner in the proposed Hillpoint Farm development off Virginia Route 10 in Suffolk. Besides the studio, it was to have hundreds of upscale homes, a golf course and commercial space.

The loan amounts exceeded the bank's legal lending limit for loans to one borrower.

The indictment also alleges that the Hollands ordered employees to draw up fraudulent loan papers, then lied to federal investigators about it. One of the loans in question was made to March's wife, June. Prosecutors contend the money was funneled back to Dr. March to repay interest on the Oceans Holdings loan.

The Hollands denied the charges in a statement Friday. They said they will plead innocent in federal court in Norfolk on Wednesday and request jury trials.

Saturday, at the senator's handsome brick home on Court Street, son Gregory Holland declined to comment, except to say, ``The people have been very supportive.''

After serving 17 years in the Senate representing the rural 15th District, which includes parts of Suffolk, Franklin and Isle of Wight, Holland could expect a rally of support.

``The people in this community will stand behind them with their support, and let the judicial system serve its purpose,'' Fire Chief W.B. ``Willie B'' Copeland said as he stood on East Norfolk and Western Street watching an abandoned house burn to the ground in a fire drill.

Farmers Bank, an impressive, brick, Colonial-style building, stands on Route 460 at the eastern gateway of Windsor's chain of small businesses, gas stations and restaurants.

The bank was closed Saturday, but the drive-through ATM machine was still busy with customers - and their opinions.

Most believe the bank - founded in 1919 by Richard Holland's father, Shirley, and with current total assets of $75 million - is on solid financial ground.

``That happened between 1990 and '92,'' said bank customer Tony Ambrose, 39, referring to dates of the allegations. ``All that is water under the bridge.''

Barbara Holland, who is no relation to the senator, minced few words from behind the wheel of her pickup, loaded with dead chickens from her farm.

``I don't like him; I've never liked him,'' said the silver-haired Holland. ``He's a politician.

``If he did something wrong, he should pay for it,'' she said. ``But that may not happen. The justice system in this country stinks.''

At Windsor Pharmacy, three pictures of politicians hang on the wall. Gov. George F. Allen and former Gov. L. Douglas Wilder hang side by side, just beneath a signed photo of Sen. Holland.

Pharmacist Bob Parsons is a Holland booster.

``They're a good, fine family; I do not believe these allegations,'' said Parsons, wringing his hands and speaking in hushed tones. ``Surely there's bound to be some misunderstanding.'' ILLUSTRATION: Color photo

State Sen. Richard J. Holland is accused of making illegal bank

loans and lying to investigators.

Photo

GARY C. KNAPP

Ebbie Lee, left, and her husband, Ray, eat breakfast Saturday at

the Dairy Queen in Windsor, where the main topic of conversation was

the indictment of state Sen. Richard J. Holland and his son Richard

Jr.

Graphic

The Virginian-Pilot

THE MOVEMENT OF MONEY

SOURCE: U.S. Justice Department