A change of plea hearing has been scheduled in the federal bank and wire fraud case against developer John Kline.

Chief Judge James Gritzner of the U.S. District Court for the Southern District of Iowa in Des Moines signed an order today setting the hearing for 11 a.m. Thursday.

Kline and Randal Walters were indicted in November 2011 on nine counts of bank and wire fraud in connection with loans to development companies they operated. The loans were used for purposes unrelated to the development projects, according to the charges against them.

Kline had pleaded innocent and was scheduled to go on trial Jan. 22.

Walters pleaded guilty to one count of bank fraud in September.

Under terms of a plea agreement, he will avoid prison time. Gritzner ordered that details of the agreement would be confidential and Walters and his attorney would not say whether he had agreed to tesify against Kline.

Walters is scheduled to be sentenced Feb. 6.