Developer Kline Chipping Away at Court-Ordered Restitution

Developer John Kline – or people acting on his behalf – is chipping away at court-ordered restitution after he pleaded guilty to two counts of bank fraud, Kent Darr of the Des Moines Business Record reported.

Kline of Urbandale was ordered to make more than $700,000 in restitution to West Des Moines-based First Bank. The judgment against Kline was nearly $1.2 million

The bank has received “certain nonmonetary concessions, cooperation, consideration, waivers, and other benefits from various persons not a party to this matter and Mr. Kline, outside of the collection of the judgment and as part of various agreements" that have a value of $450,000, an attorney for the bank said.

The balance of the judgment was to go to First National Bank Midwest and Keokuk State Savings Bank, according to the story.

The three banks made development loans to Kline and his business partner, Randal Walters. The two reportedly used the loans to prop up other failing business enterprises.