A federal grand jury in Des Moines has indicted Henry J. Schappert, 57, of Urbandale, Iowa, on three counts related to making false statements on loan applications and during bankruptcy proceedings.
According to the indictment, Schappert applied for and received more than $415,000 through Economic Injury Disaster Loans (EIDL) and Paycheck Protection Program (PPP) loans in 2020 and 2021. The charges allege that he submitted applications or amended applications containing false information about employee numbers, revenue, cost of goods sold, and employee wages for his company, Allied Exteriors.
The indictment further states that after receiving the EIDL and PPP funds, Schappert established a new business called Pots and Shots, LLC—a bar and plant store located in West Des Moines—and transferred over $129,000 from Allied Exteriors’ accounts to this venture.
In 2024, Schappert filed for bankruptcy in the Southern District of Iowa. Prosecutors allege he made multiple false declarations on his bankruptcy petition and schedules.
United States Attorney David C. Waterman for the Southern District of Iowa announced the indictment. The Federal Bureau of Investigation is conducting the investigation with support from the Office of the United States Trustee.
Assistant United States Attorney Joseph Lubben is prosecuting the case.
“An indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law,” according to the announcement by prosecutors.
