A federal grand jury in Des Moines has indicted Henry J. Schappert, 57, of Urbandale, on charges related to making false statements during loan applications and bankruptcy proceedings.
According to the indictment, Schappert applied for and received more than $415,000 through Economic Injury Disaster Loans (EIDL) and Paycheck Protection Program (PPP) loans in 2020 and 2021. The funds were obtained under the name of his company, Allied Exteriors. The indictment alleges that Schappert provided inaccurate information on the loan applications or their amendments, including overstating employee numbers, revenue, cost of goods sold, and employee wages.
The indictment further states that after obtaining the EIDL and PPP loan proceeds in 2021, Schappert established a new business called Pots and Shots, LLC—a bar and plant store located in West Des Moines—and transferred over $129,000 from Allied Exteriors’ accounts to this venture.
Additionally, prosecutors allege that Schappert filed for bankruptcy in the Southern District of Iowa in 2024. During this process, he is accused of making several false declarations on his bankruptcy petition and related schedules.
United States Attorney David C. Waterman for the Southern District of Iowa announced the charges. The Federal Bureau of Investigation is conducting the investigation with support from the Office of the United States Trustee. Assistant United States Attorney Joseph Lubben is handling prosecution.
"An indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law," according to the statement from authorities.
