Dover developer Mike Zimmerman pleaded NOT guilty Thursday at an arraignment hearing on federal bank fraud charges. ]
The 55-year-old Zimmerman is charged with conspiracy, money laundering and making false statements to Wilmington Trust Bank, before M&T Bank Corporation bought out Wilmington Trust in 2011.
Prosecutors claim Zimmerman obtained more than $37 million in financing from Wilmington Trust for three projects, then diverted construction loans for unauthorized purposes. Zimmerman's attorney though says Wilmington Trust was not the victim of any fraud but instead engaged in sloppy accounting practices.
Zimmerman remains free on bail with an ankle bracelet while he awaits trial.
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