Judge says Kline and Walters will stand trial together on bank and wire fraud charges
Tuesday, April 10, 2012 2:59 PM
Developers John Kline and Randal Walters will stand trial together on bank and wire fraud charges, a federal judge ruled Monday.
U.S. District Judge Ronald Longstaff said in the ruling that federal prosecutors will not use comments Kline made to investigators about the operations of companies he operated with Walters, primarily Meadow Cove LC and Oaks Development Co.
The pair were indicted in November, based on accusations that they diverted bank loans intended for specific projects to other businesses and for their personal use. The government said 13 banks lost nearly $4 million over a 38-month period from 2004 to 2007.
Walters' attorney had argued that the trials should be separated because of comments acknowledging the crimes, according to court records. The trial is set for September.