Iowa Man Sentenced for Misusing COVID-19 Relief Loans
A federal judge ordered Henry Schappert to serve two years in prison for financial fraud related to pandemic relief.
Updated on Oct. 2, 2026 in Financial Crime
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Henry Schappert, 58, has been sentenced to 24 months in federal prison for making false statements on loan and bankruptcy applications. He misappropriated over $250,000 in COVID-19 relief funds to support his now-closed business.
Why it matters
The case highlights ongoing federal efforts to prosecute individuals who exploited pandemic-era financial programs to sustain failing businesses through fraudulent reporting.
Schappert received a 24-month prison sentence and five years of supervised release. The court-ordered restitution of $265,567 comes after the government initially sought a 38-month sentence within an advisory range of 33 to 41 months.
The players
Henry Schappert
The 58-year-old Iowa man was convicted of financial fraud and bankruptcy deception.
The details
Schappert falsified revenue, payroll, and employee counts to obtain disaster relief funds in 2020 for his West Des Moines business, Pots and Shots. He also concealed income and sales proceeds during subsequent bankruptcy proceedings.
Timeline
In 2020, Schappert applied for pandemic disaster relief loans.
The business Pots and Shots closed and was sold in 2024.
Schappert was sentenced to 24 months in prison on October 1, 2026.
Legal Context
This case follows a national pattern of federal prosecutors targeting pandemic relief fraud under the Coronavirus Aid, Relief, and Economic Security (CARES) Act. The sentencing reflects broader ongoing efforts to recover taxpayer funds misused during the public health crisis.
This conviction serves as a notice to local business owners that the federal government remains active in auditing pandemic loan applications years after the initial disbursements. Residents should be aware that false financial reporting can lead to severe long-term legal consequences.
The takeaway
Business owners must maintain precise financial documentation to remain in compliance with government loan terms. Failing to provide accurate information during relief applications or subsequent bankruptcy filings creates significant personal legal risk.
Further reading
For more information on legal proceedings, visit our Financial Crime section.
Source note: This article includes information reported by Des Moines Register.
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Should courts impose stricter prison sentences for fraud involving government disaster relief funds?
