Cedar Falls man sentenced for ‘check-kiting scheme’ that caused nearly $250,000 in losses to a trucking company
CEDAR FALLS, Iowa (KCRG) - A 39-year-old man from Cedar Falls was sentenced to prison after pleading guilty in a bank fraud scheme.
Nolan Otto Dewall was a manager and shareholder at a Black Hawk County grain cooperative, as well as a part owner of a trucking company in Dike, Iowa. Evidence at the hearing showed that in May of 2018, DeWall “check-kiting” scheme in which he transferred large amounts of funds by check between the grain cooperative and trucking company.
The checks had no legitimate business purpose but were designed to falsely and temporarily inflate the balances of the accounts to benefit the grain cooperative, which was in financial distress.
When the check-kiting scheme collapsed, the trucking company’s account was left with a negative $247,000 balance. As a result, the company went defunct and was forced to sell all of its assets. One of DeWall’s partners in the trucking business had to file for personal bankruptcy and another was forced to take out a loan and repay the negative balance with personal funds.
DeWall was sentenced to 12 months and one day imprisonment. He must also pay $217,441.96 in restitution to his partners in the trucking business and serve a two-year term of supervised release after the prison term.
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