Developer enters guilty plea.
55 year old Randal L. Walters appeared in federal court on Thursday and pled guilty to one count of bank fraud in connection with a loan to develop a Des Moines area condominium project.
During the plea proceeding, Walters admitted to diverting funds borrowed from First Bank of West Des Moines, Iowa, for a Des Moines area condominium project know as the Meadow Cove project. Walters also admitted that he made or caused to be made material misrepresentations to First Bank and/or the material omission of information to First Bank regarding the intended use of certain funds being advanced on the Meadow Cove project, the
status of development of the Meadow Cove project, and the extent to which Meadow Cove had received lien waivers from various subcontractors on the Meadow Cove project.
Sentencing before United States District Court Chief Judge James E. Gritzner is scheduled on January 3, 2013, at 9:00 am. Walters remains free on conditions of release pending sentencing. The conviction carries a possible maximum sentence of 30 years
imprisonment, a $1,000,000 fine, $100 in special assessments, and 5 years of supervised release.
This case was investigated by the United States Federal Bureau of Investigation, and was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.