Businessman Admits Role in Defrauding Lender

Allison Tussey —  October 9, 2013 — Leave a comment

Salvatore J. Leone, 50, Dover, Delaware, pleaded guilty to conspiracy to commit bank fraud concerning the procurement and use of loan funds.

Leone was charged via criminal information on September 9, 2013.  He pled guilty on October 7, 2013.

According to the information, Leone was a project manager and partner in several limited liability companies formed for the purpose of developing real estate in and around the area of Dover, Delaware, including but not limited to TBC Enterprises, LLC; North Dover Holdings, LLC; and Shoppes at Fieldstone Village, LLC.

Michael A. Zimmerman, a separately charged co-conspirator, was the owner and President of BBC Properties, Inc. (“BBC“), a real estate development company located in Dover, Delaware.

Through BBC, Zimmerman undertook numerous business ventures and real estate development projects, consisting of commercial and residential development, commercial and residential leasing, and marina development and operations in Delaware, Maryland, Florida, and the Bahamas. Leone served as a project manager on two of Zimmerman‘s real estate projects. Leone made material misrepresentations to Wilmington Trust bank in order to fund the real estate projects. Leone and Zimmerman used some of the loan proceeds for personal use.  Leone also falsified draw requests.

The defendant faces up to 30 years in prison and a $1 million fine. Sentencing is set for February 13, 2013.

Allison Tussey

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