An Urbandale man pleaded guilty in federal court to lying to obtain pandemic loans and making false statements in bankruptcy proceedings.
Henry Schappert, 57, submitted a Paycheck Protection Program Loan application in May 2021 for his company, Allied Exteriors, that “overinflated Allied Exteriors’ gross income, number of employees, payroll, and gross receipts,” according to a news release from the United States Attorney’s Office in the Southern District of Iowa.
Schappert would not have been entitled to the $265,567 loan that U.S Bank approved for Allied Exteriors without the falsities in the application, according to the news release.
A federal grand jury in Des Moines last year returned a three-count indictment alleging Schappert fraudulently applied for and obtained Economic Injury Disaster Loans. He was charged with two counts of false statement on a loan application and one count of false declaration during a bankruptcy proceeding.
Prosecutors allege that after receiving the loans, Schappert formed Pots and Shots, LLC and “subsequently transferred over $129,000 from Allied Exteriors’ accounts to this new venture.”
Schappert filed for bankruptcy in 2024, according to the news release. His filing included multiple false statements and declarations, including denying ownership of businesses, claiming he had not earned income for two years prior, understating his employment and claiming he had not closed bank accounts within the year before filing for bankruptcy.
On June 1, 2026, Schappert pleaded guilty to making false statements on a loan application and a false declaration during bankruptcy proceedings, according to court documents. A judge recommended that his guilty plea be accepted in a court document filed Tuesday, June 16.
Schappert faces up to 30 years in prison for false statements on a loan application, and up to five years for making false declarations during bankruptcy proceedings. He is scheduled to be sentenced on Oct. 1, 2026.
Register reporter Nick El Hajj contributed to this report.
Kyle Werner is the breaking news and public safety reporter for the Register. Reach him at kwerner@registermedia.com.
This article originally appeared on Des Moines Register: Urbandale man pleads guilty to fraud in obtaining PPP loan
Reporting by Kyle Werner, Des Moines Register / Des Moines Register
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By Kyle Werner, Des Moines Register | USA TODAY Network
