An Urbandale businessman, Henry J. Schappert, 57, pleaded guilty on June 1, 2026, to charges of making false statements on a Paycheck Protection Program (PPP) loan application and false declarations during subsequent bankruptcy proceedings in Des Moines, Iowa.
According to court documents, Schappert, operating Allied Exteriors, submitted a PPP loan application in May 2021. He significantly inflated the business's gross income, employee count, payroll, and gross receipts, leading U.S. Bank to approve a $265,567.00 loan he would not have otherwise qualified for.
Approximately three years later, in July 2024, Schappert filed for bankruptcy. During these proceedings, he made multiple false statements, including denying business ownership, claiming no income for two years, understating his employment, and falsely stating he had not closed financial accounts and only possessed one bank account.
Schappert is scheduled for sentencing on October 1, 2026. He faces a potential sentence of up to 30 years in prison for the loan application fraud and up to five years for the bankruptcy fraud. The Federal Bureau of Investigation investigated the case with assistance from the Office of the United States Trustee, and Assistant United States Attorney Joseph Lubben prosecuted the case.