Developers used loans to buy a condo, pay delinquent taxes
Developers used loans to buy a condo, pay delinquent taxes
Greater Des Moines developers John Kline and Randy Walters used $6.7 million in construction loans to buy a condominium in Florida and pay delinquent property taxes in Johnston, according to federal grand jury indictments that were made public Wednesday.
The men, partners in Oaks Development Co. and other entities, are accused of bank and wire fraud for claiming they were borrowing money for projects in Des Moines and West Des Moines but using the funds for other purposes.
They pleaded innocent during an arraignment Wednesday in U.S. District Court in Des Moines.
The indictment said that between November 2006 and January 2007, the development partners obtained $4.5 million from First Bank and 10 other Iowa and Missouri lenders who participated in the loan for Meadow Cove condominiums in Des Moines.
They obtained $2.2 million from First National Bank Midwest and one other lender for the Heritage Hills residential development in West Des Moines.
The men were released on their own recognizance pending a Jan. 30 trial.
Greater Des Moines developers John Kline and Randy Walters used $6.7 million in construction loans to buy a condominium in Florida and pay delinquent property taxes in Johnston, according to federal grand jury indictments that were made public Wednesday.
The men, partners in Oaks Development Co. and other entities, are accused of bank and wire fraud for claiming they were borrowing money for projects in Des Moines and West Des Moines but using the funds for other purposes.
They pleaded innocent during an arraignment Wednesday in U.S. District Court in Des Moines.
The indictment said that between November 2004 and January 2007, the development partners obtained $4.5 million from First Bank and 10 other Iowa and Missouri lenders who participated in the loan for Meadow Cove condominiums in Des Moines.
They obtained $2.2 million from First National Bank Midwest and one other lender for the Heritage Hills residential development in West Des Moines.
The men were released on their own recognizance pending a Jan. 30 trial.
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