Urbandale Man Charged with Making False Statements on Loan Applications and in Bankruptcy Proceedings

DES MOINES, Iowa - On November 13, 2025, a federal grand jury in Des Moines returned a three-count indictment with offenses relating to false statements on two loan applications and during bankruptcy proceedings.

As alleged in the Indictment, Henry J. Schappert, 57, applied for and obtained over $415,000 of Economic Injury Disaster Loans (EIDL) and Paycheck Protection Program (PPP) loans in 2020 and 2021 ostensibly on behalf of his company, Allied Exteriors. The Indictment alleges that Schappert made several false statements on applications or amended applications for the loans which included inflated number of employees, revenue, cost of goods sold, and employee wages.

The Indictment further alleges that Schappert, in 2021, after receiving the EIDL and PPP loan proceeds, formed Pots and Shots, LLC, a bar and plant store in West Des Moines, Iowa. Schappert subsequently transferred over $129,000 from Allied Exteriors' accounts to this new venture.

The Indictment also alleges that Schappert filed for bankruptcy in the Southern District of Iowa in 2024, in which he made several false declarations on his bankruptcy petition and schedules.

United States Attorney David C. Waterman of the Southern District of Iowa made the announcement. The Federal Bureau of Investigation is investigating the case with assistance from the Office of the United States Trustee.

Assistant United States Attorney Joseph Lubben is prosecuting the case.

An indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.