Del. Developer Indicted on More Fraud Offenses - WBOC-TV 16, Delmarvas News Leader, FOX 21 -

Del. Developer Indicted on More Fraud Offenses

(Photo: CBS) (Photo: CBS)

WILMINGTON, Del. (AP) - Federal prosecutors have announced that a Dover developer has been indicted on additional fraud offenses.

U.S. Attorney Charles M. Oberly III said Tuesday that a grand jury had returned a superseding indictment against 56-year-old Michael Zimmerman.

Zimmerman pleaded not guilty in February to charges of conspiracy, money laundering and making false statements to a financial institution.

The superseding indictment claims that Zimmerman made a false statement in connection with a construction draw request to the Bancorp Bank for more than $600,000 for a project in Sussex County.

Prosecutors have alleged that Zimmerman obtained more than $37 million in financing from Wilmington Trust for three projects, then diverted construction loans for unauthorized purposes. Authorities say Wilmington Trust incurred a loss of more than $26 million on the three projects.

Powered by WorldNow

All content © Copyright 2000 - 2014 Worldnow and WBOC. All Rights Reserved. For more information on this site, please read our Privacy Policy and Terms of Service