Walter R. Zimmerer, III, 70, formerly owner of Zimmerer Custom Homes in LeClaire, was sentenced Friday to one month in jail and 12 months of home confinement after previously pleading guilty to nine counts of bank fraud.
Mr. Zimmerer, now of Colts Neck, N.J., was sentenced by U.S. District Judge Stephanie M. Rose, according to a news release.
Mr. Zimmerer also was ordered to serve two years of supervised release following the home confinement, pay $379,533 in restitution to his victims and a$900 special assessment to the crime victim fund.
In 2007 and 2008, Mr. Zimmerer took out loans from Northwest Bank & Trust Company and
Great River Bank & Trust to build homes in Bettendorf and LeClaire, according to the release.
The loans were on a draw system, so he could draw funds on the loans at various stages of the construction process provided he proved he was current on payments to subcontractors.
Mr. Zimmerer, who had fallen behind on earlier construction projects, diverted the money to pay debts in connection with those projects. In order to deceive the banks and continue to draw funds, he created false documents (mechanics lien waivers) purporting to show that he was current on his payments to subcontractors, the release stated.