An Urbandale man has pleaded guilty to federal charges involving fraudulent statements made to obtain a Paycheck Protection Program (PPP) loan and false declarations during bankruptcy proceedings.
According to court records, 57-year-old Henry J. Schappert, owner of Allied Exteriors, submitted a PPP loan application in May 2021 that significantly overstated the company’s gross income, payroll, employee count, and gross receipts. Based on those false claims, U.S. Bank approved a PPP loan totaling $265,567 that Schappert would not have qualified for otherwise.
Federal prosecutors said Schappert later filed for bankruptcy in July 2024 and made several false statements in court documents. Authorities allege he failed to disclose ownership of a business within the previous four years, claimed he had earned no income during the prior two years, understated his employment status, and omitted information about financial accounts.
Schappert pleaded guilty on June 1, 2026. He is scheduled to be sentenced on October 1, 2026.
The charge of making false statements on a loan application carries a maximum penalty of 30 years in federal prison, while the bankruptcy-related charge carries a maximum sentence of five years. Any sentence will be determined by a federal judge after considering federal sentencing guidelines and other statutory factors.
The case was investigated by the Federal Bureau of Investigation with assistance from the Office of the United States Trustee. Assistant U.S. Attorney Joseph Lubben is prosecuting the case.
