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Former Home Builder Sentenced for Bank Fraud

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DAVENPORT, Iowa (AP) A former Iowa home builder has been ordered to repay $379,533 and serve one month in prison for bank fraud.

A federal judge sentenced 70-year-old Walter Zimmerer last week.

Prosecutors say Zimmerer took out loans in 2007 and 2008 to build homes in Bettendorf and LeClaire, Iowa.

The loans were set up to allow Zimmerer to continue drawing money out during construction as long as he was current on his payments to subcontractors.

Zimmerer fell behind on his payments to subcontractors but created false documents to show he was current. Eventually he defaulted on the loans.

He pleaded guilty to nine counts of bank fraud.

In addition to serving a month in prison, Zimmerer will have to serve 12 months of home confinement and two years of supervised release.

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