West Des Moines Developer Headed to Prison Following Friday Sentencing

West Des Moines developer John Kline will spend the next two-and-a-half years in federal prison after he pled guilty to two counts of bank fraud, the Des Moines Business Record reports.

Kline was sentenced in U.S. District Court Friday, the article said.

In addition to prison time, Kline also must pay nearly $1.2 million in restitution to banks and will serve five years probation after his release from a minimum security prison, the Business Record reported.

Kline told U.S. District Court Chief Judge James Gritzner prior to being sentenced that he was "ashamed and humbled" by his actions, the article said.

Kline, one of the principals in West Des Moines-based Oaks Development, pled guilty in January to two counts of bank fraud, admitting that he fraudulently used loans for housing projects to support various aspects of his business.

to 12 months and one day in prison for his participation in a bank fraud scheme. He also is required to serve a term of five years of supervised probation following release from prison, make $500,000 restitution to the victims and also directed Walters to pay a $100 special assessment to the crime victims fund.

Related: Metro Developer Walters Pleads Guilty to One Count of Bank Fraud

Both men were indicted in November 2011 on nine counts of bank and wire fraud for allegedly using $6.7 million in construction loans for other purposes, including buying a condominium in Florida and paying delinquent property taxes in Johnston, the Business Record previously reported.

In exchange for his plea to two counts of bank fraud before Chief Judge James Gritzner, federal prosecutors dropped seven counts of wire fraud and recommended a lighter sentence – 30 months in prison, compared with up to 51 months under federal sentencing guidelines.