The watchdog in charge of monitoring TARP recipients on Tuesday announced criminal charges against a former official of Anchor Bancorp Wisconsin Inc. for allegedly orchestrating a fraudulent real-estate deal.
David Weimert, 63, was indicted in the U.S. District Court in Madison, Wis., on six counts of wire fraud relating to a real-estate development transaction he worked on as senior vice president of lending administration and as a president of an Anchor subsidiary that invested in real-estate developments. The charges are the result of a probe conducted by the Federal Bureau of Investigation and the Office of the Special Inspector General for the Troubled Asset Relief Program (SIGTARP).
Reached Tuesday, Mr. Weimert’s attorney, Stephen Meyer, said his client didn’t commit a crime and will plead not guilty.
“I don’t think what’s been alleged is a crime. The bottom line is that my client worked really hard to put together a successful sale of property during a time period when the economy was crashing, and the bank was directing him to liquidate the property in question,” Mr. Meyer said. “The end result was that it converted one of Anchor Bank’s nonperforming assets, a negative on the books, into a profitable performing loan, a positive for the bank.”
Mr. Weimert faces a maximum penalty of 30 years’ imprisonment on each count of wire fraud.