⏱ 2 min read
Henry J. Schappert, a 57-year-old Urbandale businessman, pleaded guilty on June 1, 2026, to making false statements on a PPP loan application and false declarations during subsequent bankruptcy proceedings in Des Moines, Iowa. Schappert, who operated a business called Allied Exteriors, submitted a PPP loan application in May 2021 that significantly overinflated his company’s gross income, number of employees, payroll, and gross receipts. This resulted in a $265,567.00 PPP loan approval from U.S. Bank, a loan he would not have been entitled to without the false statements.
About three years later, in July 2024, Schappert filed for bankruptcy, making multiple material false statements and declarations in his petition, schedules, and statement of financial affairs. He denied ownership of a business within the prior four years, claimed he had earned no income for the past two years, understated his employment, and claimed he had not closed financial accounts within the year prior to filing for bankruptcy and only had one bank account.
Schappert is scheduled to be sentenced on October 1, 2026, and faces a sentence of up to 30 years in prison for making false statements on a loan application, and up to five years in prison for making false declarations during bankruptcy proceedings. The case was investigated by the Federal Bureau of Investigation with assistance from the Office of the United States Trustee, and prosecuted by Assistant United States Attorney Joseph Lubben.
The United States Attorney David C. Waterman of the Southern District of Iowa announced the guilty plea. The case highlights the ongoing efforts to combat PPP loan fraud and bankruptcy fraud in Iowa and across the United States.
📋 Key Facts
- Crime: Fraud & Financial Crimes
- Defendant: Iowa
- Location: IA
- Source: DOJ Press Release
