Developer Pleads Guilty to Bank Fraud

(CN) - An Iowa real estate developer pleaded guilty to a bank fraud in a loan for a condominium project, federal prosecutors said.

Check out Courthouse News' Securities Law Review.

Randal L. Walters, 55, of Polk County, Iowa, admitted he diverted money borrowed from First Bank of West Des Moines, which was intended for the Meadow Cove development.

"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," the U.S. Attorney's Office for Des Moines said in a statement.

Walters faces up to 30 years in prison and a fine of $1 million at his Jan. 3, 2013 sentencing.

He is free on bond.

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