Already facing federal charges of bank fraud, former Dover developer Mike Zimmerman had had two additional counts of money laundering and making a false statement levied against him.
United States Attorney for the District of Delaware Charles M. Oberly III announced April 16 that a federal grand jury has returned a superseding indictment charging former Dover developer Michael A. Zimmerman, 56, with additional fraud and money-laundering offenses.
The indictment alleges Zimmerman made a false statement in April 2008 in connection with a $685,206.00 construction draw request to The Bancorp Bank for the Long Neck project in Sussex County, Oberly said. The indictment alleges two line items within the draw request, totaling $440,206 were false. Oberly alleged that Zimmerman submitted several forged and/or fraudulent documents to Bancorp in connection with the construction draw request. Zimmerman's conduct in submitting the false draw request is punishable by a maximum term of 30 years imprisonment, a fine of $250,000, and mandatory restitution.
Oberly further alleged Zimmerman utilized at least a portion of the construction draw request for personal purposes unrelated to the Long Neck project. In particular, Zimmerman caused the transfer of Bancorp loan proceeds from his company account to his personal bank account in the amount of $106,672. Zimmerman ultimately used those funds to reimburse himself for a check he had written on or about May 7, 2008, toward his partnership investment in Club Wild Quail, LLC – an entity which owned the Wild Quail Country Club in Camden-Wyoming. The diversion of Long Neck project funds to Zimmerman's personal account constitutes money laundering and carries a maximum term of 10 years imprisonment and a fine of up to $250,000.