First Bank says Kline has paid up, but not in cash
Thursday, September 19, 2013 11:10 AM
John Kline and "various persons" are making good on restitution that was ordered by a federal judge after the Greater Des Moines developer pleaded guilty to two counts of bank fraud, according to court documents.
An attorney for West Des Moines-based First Bank said his client has received "certain nonmonetary concessions, cooperation, consideration, waivers, and other benefits from various persons not a party to this matter and Mr. Kline, outside of the collection of the judgment and as part of various agreements" that have a value of $450,000. Under a restitution order signed by Chief Judge James Gritzner of the U.S. District Court, First Bank was to receive $701,700 of a nearly $1.2 million judgment.
The balance was to go to First National Bank Midwest and Keokuk State Savings Bank. All three banks participated in development loans to Kline and business partner Randal Walters. Prosecutors said the two men illegally used the funds to support other failing businesses.
First Bank is now willing to share equally in additional payments that are received toward the restitution.
Federal prosecutors have taken several steps to recover funds from Kline, including seizing about $9,800 in cash that was found in a vault after his Urbandale home burned to the ground. Earlier this week, prosecutors sought to garnish a tax-protected college education fund. The value of the fund was not disclosed in court documents.