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An Ankeny contractor who admitted to blowing customer money on “gambling” and “irresponsible spending” was sentenced on December 18, 2025, to three years in federal prison. According to court records, he was punished for lying during bankruptcy proceedings.
Louis Grant Peterson, who also went by “Chip Peterson,” is 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 much of that money on gambling and other personal expenses.
Ankeny Man Sentenced to Three Years’ Imprisonment for Bankruptcy Fraud https://t.co/ddb1hfUE7S
— US Attorney Office – Southern District of Iowa (@USAO_SDIA) December 23, 2025
Court records also show this wasn’t the first time Peterson had run into trouble. In 2024, he was convicted of theft in Woodbury County after taking more than $50,000 upfront for construction work that was never done.
Unfavorable reviews show pattern of behavior
According to a Yelp review, one user met with Peterson in Des Moines in 2017. They later sent a deposit to start repairs, however, they added: “The job never got finished and we were told that they did not use all of our money that his partner scammed him and we would need to wait until Chip got everything straightened out with the courts. We have not heard anything and the job is not finished. The last [conversation] was in 2019.”
Similar reviews were seen on the company’s Facebook page, however, they have not been independently verified.
Ankeny contractor admits 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 several false statements about his job, businesses, income, bank accounts, tools, equipment, electronics, and jewelry. Investigators said Peterson later admitted he had “no idea” where the income figures he reported came from and acknowledged that he hadn’t paid taxes for several years.
Authorities also said that even after he was federally indicted, Peterson took a $17,000 deposit for a window installation job he never completed. The money was eventually returned after the victims filed a complaint with the Iowa Attorney General’s Office.
The case was announced by U.S. Attorney David C. Waterman of the Southern District of Iowa. The FBI investigated the case with help from the Office of the United States Trustee, and Assistant U.S. Attorney Joseph Lubben prosecuted it.
Featured image: Legacy Siding and Windows via NextDoor
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