Dover Developer Faces Bank Fraud Allegations - WBOC-TV 16, Delmarvas News Leader, FOX 21 -

Dover Developer Faces Bank Fraud Allegations


DOVER, Del. (AP)- The attorney for a Dover developer says he will plead not guilty at his arraignment next month on federal bank fraud charges.
A federal magistrate on Tuesday unsealed an indictment charging 55-year-old Michael Zimmerman with conspiracy, money laundering and several counts of making false statements to a financial institution.
Prosecutors allege that Zimmerman obtained more than $37 million in financing from Wilmington Trust for three development projects, then diverted construction loans for unauthorized purposes, including acquiring a personal interest in a development in the Bahamas.
Zimmerman's attorney said Wednesday that Wilmington Trust was not the victim of any fraud but instead engaged in sloppy accounting practices.
Prosecutors claim Wilmington Trust, which sold the debt related to the Zimmerman projects in 2011, incurred a loss of more than $26 million.


Powered by Frankly

All content © Copyright 2000 - 2018 WBOC. All Rights Reserved. For more information on this site, please read our Privacy Policy, and Terms of Service, and Ad Choices