OTTUMWA — A month ago, federal prosecutors told the judge in the Timothy Stabile case they were working with U.S. Bank toward a settlement.

That was the last the court had formally heard until this week, when prosecutors filed a status report in U.S. District Court. The report’s conclusion: We’re still working on it.

The case focuses on Stabile, owner of Nick & Joie’s restaurant in Ottumwa. Prosecutors accuse Stabile of stealing part of the money used to finance the restaurant from a former investment client. Stabile reached a plea bargain with prosecutors late last year, agreeing to forfeit the property.

U.S. Bank’s claim surfaced in March. The bank says it gave Stabile $160,000 in mortgages and loans connected to the restaurant. It included copies of the agreements in a filing in which it claimed a substantial interest in the property.

The claim focused partially on the timeline for the loans, which Stabile took out prior to the federal government’s case against him. U.S. Bank claimed priority interest on the property because its financing was issued before federal prosecutors made their claim.

That changed things for the case’s final settlement. Federal prosecutors examined the bank’s filing and agreed “that U.S. Bank, NA has an interest in the forfeited property that is superior to that of the United States.”

The federal government must reach a deal with the bank before it can settle the case. Forfeiture of the restaurant is part of the final settlement, but that is on hold while attorneys try to sort out exactly who receives what.

The sheer amount of money involved appears to be part of the delay.

“Because of the amount of the financial interest of the [bank] in the forfeited property, the United States and the [bank] are attempting to determine the best way to proceed,” prosecutors wrote in the filing.

Stabile faces up to 30 years in prison and fines of up to $500,000 in the case.

Nick & Joie’s remains open pending the case’s final resolution and a judge’s order of forfeiture.

Matt Milner can be reached at (641) 683-5359 or via e-mail at mwmilner@mchsi.com