By The Associated Press 2:53pm, January 30, 2013 - Updated 6:57pm, January 30, 2013The 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 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.
This material may not be published, broadcast, rewritten, or redistributed.