Urbandale Business Man Pleads Guilty to PPP Loan Fraud and Bankruptcy Fraud

DES MOINES, Iowa - An Urbandale man pleaded guilty on June 1, 2026, to making false statements on a PPP loan application and false declarations during subsequent bankruptcy proceedings.

According to public court documents, Henry J. Schappert, 57, operated a business called Allied Exteriors. In May 2021, Schappert submitted a PPP loan application on behalf of Allied Exteriors that significantly overinflated Allied Exterior's gross income, number of employees, payroll, and gross receipts. As a result, U.S. Bank approved a $265,567.00 PPP loan for Allied Exteriors-a loan Schappert would not have been entitled to absent his false statements to U.S. Bank.

Approximately three years later, in July 2024, Schappert filed for bankruptcy. In his bankruptcy petition, schedules, and statement of financial affairs he made multiple material false statements and declarations. These included denying ownership of business within the prior four years, claiming he had earned no income for the past two years, understating his employment, and claiming 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. A federal district court judge will determine any sentence after considering the United States sentencing guidelines and other statutory factors.

United States Attorney David C. Waterman of the Southern District of Iowa made the announcement. The Federal Bureau of Investigation investigated the case with assistance from the Office of the United States Trustee. Assistant United States Attorney Joseph Lubben prosecuted the case.