Arraignment for Del. Developer Charged With Fraud - WBOC-TV 16, Delmarvas News Leader, FOX 21 -

Arraignment for Del. Developer Charged With Fraud

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WILMINGTON, Del. (AP) - A prominent Dover developer is facing arraignment on federal bank fraud charges.

A lawyer for 55-year-old Michael Zimmerman has said Zimmerman would plead not guilty at Thursday's arraignment.

Zimmerman is charged with conspiracy, money laundering and making false statements to a financial institution.

Prosecutors allege he obtained more than $37 million in financing from Wilmington Trust for three projects, then diverted construction loans for unauthorized purposes.

Zimmerman's attorney has said 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.

M&T Bank Corp. acquired Wilmington Trust Corp. in 2011, resulting in more than 700 layoffs in Delaware.

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