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.
