Developer John Kline refused to divulge details of his finances in a bankruptcy case after learning of a federal bank fraud investigation, Jerrold Wanek, Kline’s attorney, said today.

Wanek said he did not know whether Kline was a target of the investigation or which banks were involved.

Matthew Whitaker, U.S. attorney for the Southern District of Iowa, was not available for comment. However, a spokesman noted that as a matter of policy the office will not confirm or deny investigations of any description.

“We really don’t know whether we are the target of any investigation,” Wanek said. “The proper legal advice to my client was to wait until we knew the details.”

Kline refused to release an inventory of his assets and debts in a March 16 filing in U.S. Bankruptcy Court in Des Moines that was to contain a detailed account of his finances, including state and federal tax returns.

Citing the protection from self-incrimination provided by the Iowa and U.S. constitutions, Kline reasserted the right during a meeting of creditors held today in bankruptcy court.

The U.S. trustee’s office filed a motion March 20 seeking to dismiss the bankruptcy case because Kline did not reveal his finances. If that motion were successful, Kline could again file for bankruptcy but in the interim would lose the shield from creditors provided by the Chapter 7 filing.

A dismissal also could be a first step toward a total discharge of the case, under which Kline would be prohibited from claiming bankruptcy in the future.

However, Wanek said he will make every attempt to file a complete inventory of Kline’s assets and liabilities.

Kline filed what is called a short-form petition on Feb. 17, checking boxes indicating that he had assets of between $1 million and $10 million and debts in that same range. Wanek was granted an extension beyond the typical 15 days to file a complete inventory of debts and assets.

However, Wanek said he learned that federal investigators were interviewing people in connection with bank fraud. After consulting with other experts, Wanek said he decided it was in Kline’s best interest to exercise his Fifth Amendment right against self-incrimination.

Bankruptcy experts have said that exercising that right in a civil matter, such as a bankruptcy filing, raises a suspicion of wrongdoing, one that could not be used against a defendant in a criminal case.