KEOSAUQUA — A former area businessman had pleaded guilty to two counts of making false statements to a financial institution in violation of a federal statute.

Sentencing for Rodney Vernon Thorne of Ottumwa, who owned Pedrick and Thorne Ace Hardware in Ottumwa, Keosauqua, Albia and Fairfield, is scheduled for 10 a.m. Dec. 11 in U.S. District Court in Des Moines.

Count one alleged that on March 12, 2002, Thorne “knowingly made a false statement for the purpose of influencing the action of Community First Bank, a bank the deposits of which were then insured by the Federal Deposit Insurance Corporation (FDIC) in connection with the application for a loan, in that the Defendant did not report a $275,000 debt owed to another individual on a financial statment submitted to Community First Bank, when he then and there well knew that he owed that debt.”

Count two alleged that on Sept. 20, 2004, Thorne “knowingly made a false statement for the purpose of influencing action of First Iowa State Bank, a bank the deposits of which were then insured by the FDIC, in connection with the application for a loan, in that the Defendant did not report a $680,000 debt owed to another individual on a financial statment submitted to First Iowa State Bank, when he then and there well knew that he owed that debt.”