Iowa Developer Guilty of Bank Fraud Files Chapter 7 Bankruptcy

Written by CFB Blogger. Posted in Blog

Iowa developer John Kline, who is serving a prison term after pleading guilty to bank fraud involving development deals with business partner Randal Walters, has recently filed for Chapter 7 bankruptcy in U.S. Bankruptcy Court for the Southern District of Iowa in Des Moines. The bankruptcy filing shows that Kline has $15 million in debts and only $86,000 in assets. From an article by Kent Darr for the Business Record, Kline had been sentenced to a 30-month prison term last April “after admitting that bank loans intended for housing developments in West Des Moines and Des Moines were used instead to prop up other aspects of his business”. Kline, who is earning $25/month as an electrician’s assistant in a satellite camp of the U.S. Penitentiary in Leavenworth, Kansas, was ordered to pay $1.2 in restitution. At his current payment of $100/month, Kline will fulfill his obligation in one thousand years. This marks the second occurrence of Kline filing for bankruptcy protection. He filed for bankruptcy in February 2009, but the financial information filed was for his wife, Michelle, instead. A federal bankruptcy judge tossed that bankruptcy case out of court. The news report continued, saying that this bankruptcy filing occurred after what was determined to be an arson fire had destroyed the couple’s million-dollar home. No charges have been filed in that case. Randall Walters was sentenced to 12 months plus one day for his role in the business fraud with John Kline. Walters, who had also sought protection from creditors in bankruptcy court, had his case tossed out by the presiding judge, as well. Bankruptcy fraud is a federal crime.  The attorneys at Client First Bankruptcy take their obligation seriously.  Our attorneys approach each case with care and precision and we request relevant documentation to be able to protect its clients from allegations like these.  Don’t go to less experienced or less careful attorneys who try to sell you on ‘fast relief’ or ‘speedy filings’.  Haste often leads to bigger problems than those that caused the client to seek representation in the first place. The Client First Bankruptcy attorneys are among the most knowledgeable consumer bankruptcy attorneys in the country, representing thousands of clients in consumer bankruptcy cases. Call us toll-free at 800-383-6004 Monday thru Friday from 8:30 a.m.-6:00 p.m. Central Time. You can also log onto our easy-to-navigate, interactive website at www.clientfirstbankruptcy.com 24/7 for timely and accurate information on filing your Chapter 7 or Chapter 13 bankruptcy.