The United States Attorney's Office

Northern District of Iowa

Press Releases

CEDAR RAPIDS MAN PLEADS GUILTY TO DEFRAUDING BANK
Bank Loses $450,000 After Defendant Lies on Loan Application

August 7, 2007

Contact: Sean Berry

United States Attorney Matt M. Dummermuth announced today that a man who lied in a bank loan application pled guilty today in federal court in Cedar Rapids.

CHRIS PIPKIN, 39, from Cedar Rapids, Iowa, was convicted of making false statements on a loan application.

At the plea hearing, PIPKIN admitted that, in January 2000, he applied for a $500,000 partnership line-of-credit from Firstar Bank. In order to obtain the loan, PIPKIN submitted a certified personal financial statement that contained information PIPKIN knew was false. For example, PIPKIN claimed his annual salary was $350,000. In truth, PIPKIN’s annual salary was far less than $350,000. After Firstar Bank approved the partnership loan, PIPKIN drew down the entire line-of-credit. The loan was to be repaid by January 27, 2001. At least $450,000 was never repaid to Firstar.

Sentencing before United States District Court Chief Judge Linda R. Reade will be set after a presentence report is prepared. PIPKIN remains free on bond previously set. PIPKIN faces a possible maximum sentence of 30 years’ imprisonment, a $1,000,000 fine, a $100 special assessment, and 5 years of supervised release following any imprisonment.

The case is being prosecuted by Assistant United States Attorney Sean R. Berry and was investigated by the Federal Bureau of Investigation.