Former developer John Kline is taking a plea deal in a bank fraud case.
Kline entered a guilty plea to two counts of bank fraud at the federal courthouse in Des Moines Friday. In return, the seven other counts against him are being dropped.
Normally, each of the fraud counts would carry a maximum sentence of up to 30 years in prison and a fine of $1 million. However, the sentencing considerations agreed on in the plea agreement have Kline paying between $1 million and $2.5 million in fines as well as being sentenced to 30 months in prison.
Kline admits to diverting funds from two development projects between 2004 and 2006. While prosecutors originally said he used some of that money for a down payment on a Florida condo, Friday Kline’s attorney told the judge the money was used to save Kline’s failing business.
In all, Kline and partner Randy Walters diverted nearly $4 million in funds.
Walters was also indicted for bank fraud. He already entered a guilty plea and is scheduled for sentencing on February 6th.