A 40-year-old Rock Hill man must pay $4 million in restitution for his role in a bank fraud and money laundering scheme, according to the U.S. Attorney's Office.
U.S. District Judge Henry Herlong Jr. this week sentenced Kyle Edward Wimmer of 1130 Hunter Trail Court to 63 months in federal prison, said Kevin McDonald of the U.S. Attorney's Office.
Wimmer could not be reached for comment Wednesday.
He pleaded guilty in August to bank fraud and money laundering charges stemming from incidents that occurred around November 2002 to October 2004, when Wimmer got money from a bank by giving false information about his real estate dealings, according to a court document obtained earlier this year by The Herald.
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A press release issued late Wednesday from the U.S. Attorney's Office noted Wimmer "devised a real estate investment scheme to defraud his investors and upstate lending institutions."
Officials have said Wimmer recruited investors to buy distressed residential properties previously purchased by him or his company. The houses were to be fixed up and rented.
Court documents note that Wimmer would get financial information from investors, inflate their annual salary and assets and give the inflated information to BB&T. Inflated property appraisals also were given to the bank, the document states, meaning the bank would loan more money than the properties were worth. About 100 such loans were taken out, officials have said.
The release states that Wimmer "skimmed profits from the deals and failed to rent or fix properties," resulting in Wimmer fraudulently gaining more than $4 million in illicit profits, according to the release.
Wimmer, who remained free on bond Wednesday, is expected to report to federal prison within the next month, McDonald said.