Former Bank Executive Convicted Of Wire Fraud
Madison, Wis. - John W. Vaudreuil, United States Attorney for the Western District of Wisconsin, announced that David Weimert, 64, Madison, Wis., was convicted of five wire fraud charges today following a five-day jury trial in federal court in Madison. The jury reached its verdict after eight hours of deliberation.
U.S. District Judge James D. Peterson scheduled sentencing for June 16, 2015, at 11:00 a.m. Weimert faces a maximum penalty of twenty years in prison on each count.
Weimert was charged with six counts of wire fraud in an indictment returned by a grand jury in February 2014. The evidence at trial showed that from December 2008 until March 31, 2009, Weimert, while working at Anchor BanCorp Wisconsin, Inc. (ABCW) as a Senior Vice-President in Lending Administration, and as the President of Investment Directions, Inc. (IDI), a wholly owned subsidiary of ABCW, devised and participated in a scheme to defraud IDI and obtain money by means of fraudulent pretenses.
The evidence at trial showed that Weimert devised a scheme to defraud IDI by lying and omitting material facts in an effort to obtain an ownership interest in Chandler Creek, a joint venture partnership formed to develop an industrial park in Round Rock, Texas, and in an effort to obtain a 4% commission fee as part of the sale of Chandler Creek.
At the trial, Weimert's supervisors at the bank testified that Weimert falsely represented that the Burke Group, a commercial real estate developer in Costa Mesa, Calif., would only purchase IDI’s share of Chandler Creek contingent on Weimert purchasing a minority interest of Chandler Creek as part of the deal. Weimert failed to disclose to the IDI Board of Directors that it was Weimert who desired the minority interest for himself, not the Burke Group.
As a result of Weimert’s misrepresentations and omissions, Weimert induced the IDI Board of Directors to accept the Burke Group’s offer to purchase Chandler Creek, along with Weimert receiving a 4.785% ownership interest as part of the deal and a 4% commission fee to Weimert, which totaled $311,680.
The charges against him are the result of an investigation by the Special Inspector General for the Troubled Asset Relief Program and the Federal Bureau of Investigation. The prosecution of this case is being handled by Assistant U.S. Attorneys Daniel Graber and Antonio Trillo.