Owner of restaurants in Kansas, Iowa, convicted in federal fraud trial

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A partner at prominent Des Moines bars and restaurants accused of fraud, identity theft and making false statements to lenders has been convicted of all charges in Kansas federal court.

Scott Anderson, an attorney from Lenexa, Kansas, a suburb of Kansas City, is one of the partners in Riley Drive Entertainment, owner of Saints Pub + Patio in Waukee. He previously owned the Beaver Tap, which has since closed Saints Pub + Patio in Beaverdale and the Tonic bar in West Des Moines. In addition, Anderson previously operated Des Moines restaurants under the names Taco hangover And Union 29.

In the early days of the COVID-19 pandemic, Riley Drive led an ultimately unsuccessful lawsuit went all the way to the Iowa Supreme Courtchallenging Governor Kim Reynolds’ orders to close restaurants.

Anderson was indicted in March 2023 on allegations that he had falsified loan documents on behalf of his companies since at least 2018, sometimes even as his business partners. when they were defendants in multiple lawsuits at the time.

Riley Drive received several loans that it defaulted on in 2019, leaving the U.S. Small Business Administration with more than $2.8 million in losses.

Prosecutors also accused Anderson of making false statements, such as claiming that none of his companies had gone bankrupt, on applications for Paycheck Protection Program loans during the pandemic, and of forging signatures for his business associates to “conclude future sales agreements for claims’, essentially cash. advances on future income, from a Delaware corporation. He further had employees pose as those partners during phone calls to the Delaware lender, giving them private information about his partners in the process.

Anderson denied wrongdoing and accused the government of overreach

In filings before the court, Anderson argued that the questions he improperly answered on U.S. Small Business Administration forms were unconstitutionally vague, and that in any event the government exceeded its statutory authority by attempting to charge filers who were currently in bankruptcy prevent them from obtaining loans. .

As to the identity theft claims, Anderson argued that he had power of attorney for one partner and thus had authority to sign on his behalf, and that one of his employees obtained the other partner’s signature while Anderson was out of state. He also accused one of those partners of trying to threaten and “blackmail” him after he provided unfavorable information in that partner’s personal bankruptcy case.

In total, Anderson was charged with 14 offenses in the various alleged schemes, and was tried on November 4. The jury began deliberating on November 13, and on November 14, Anderson was found guilty of all charges. His sentencing is set for March 25.

Anderson’s attorneys did not respond to messages seeking comment Friday.

William Morris covers courts for the Des Moines Register. He can be reached via [email protected] or 715-573-8166.