An Ankeny contractor has been sentenced to prison after gambling away customers’ money

An Ankeny contractor who admitted to firing “gambling” customer money and “irresponsible spending” was sentenced on December 18, 2025, to three years in federal prison. According to court recordshe was punished for lying during the bankruptcy proceedings.

Louis Grant Peterson, who also goes by “Chip Peterson,” 61 and formerly owned Legacy Siding and Windows, an exterior construction company based in Ankeny. Prosecutors say Peterson collected hundreds of thousands of dollars in deposits from customers for home improvement projects he never finished. He later told the FBI that he spent most of the money on gambling and other personal expenses.

Ankeny Man Sentenced to Three Years in Prison for Bankruptcy Fraud https://t.co/ddb1hfUE7S

– US Attorney’s Office – Southern District of Iowa (@USAO_SDIA) December 23, 2025

Court records also show this isn’t the first time Peterson has been in trouble. In 2024, he was convicted of theft in Woodbury County after taking more than $50,000 upfront for construction work that had not yet been completed.

Bad reviews reflect a pattern of behavior

According to a Yelp reviewA user met with Peterson in Des Moines in 2017. Later they sent a deposit to start the repairs, however, they added: “The work is not done and we were told that they did not use all our money that his partner scammed and we have to wait until Chip makes everything right in the courts.

Similar reviews were seen on the company’s Facebook page, however, they have not been independently verified.

Screenshot of Facebook comments alleging unfinished construction work, unpaid subcontractors, and complaints against contractor Chip Peterson. — Social media users described the alleged unpaid work and complaints involving contractor Chip Peterson. Credit: Facebook / Legacy Siding and Windows

Ankeny contractor admits to gambling away customer funds in federal fraud case

After racking up nearly $1 million in unsecured debt, Peterson filed for bankruptcy protection. But during those proceedings, he made many false statements about his job, business, income, bank accounts, tools, equipment, electronics, and jewelry. Investigators said Peterson later admitted he had “no idea” where the income numbers he reported came from and acknowledged he hadn’t paid taxes for several years.

First page of a US District Court judgment showing that Louis Grant Peterson pleaded guilty to false declaration and was sentenced in December 2025. — A federal court ruling shows that Louis Grant Peterson pleaded guilty to making a false bankruptcy declaration.

Authorities also said that even after he was federally indicted, Peterson took a $17,000 deposit for a window installation job that he had not completed. The money was eventually returned after the victims filed a complaint with the Iowa Attorney General’s Office.

The case was announced by US Attorney David C. Waterman of the Southern District of Iowa. The FBI investigated the case with the assistance of the Office of the United States Trustee, and Assistant US Attorney Joseph Lubben prosecuted it.

Featured image: Legacy Siding and Windows via NextDoor

The post An Ankeny contractor has been sentenced to prison after gambling away customers’ money first appeared in ReadWrite.

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