CEDAR RAPIDS -- A former Dunkerton man nearly pleaded guilty to allegations he bilked elderly investors out of nearly $1 million.

Jack Lawrence Straw, 50, had signed a plea agreement with federal prosecutors Nov. 28, his attorney Leslie Stokke told a magistrate judge during a hearing Monday in U.S. District Court in Cedar Rapids.

The agreement came less than a week after charges against Straw, a former Buchanan County sheriff's deputy who later sold insurance out of an office in Waterloo, were formally unveiled in a seven-count information.

But Stokke said he had concerns about Straw's competency to enter the plea and understand the charges against him.

Stokke entered a plea of innocent for Straw subject to an evaluation.

The charges include four counts of wire fraud and one count each of mail fraud, money laundering and making or possessing a forged security.

Stokke questioned Straw's mental health status, noting his client has been receiving psychiatric care. He rattled off a list of eight prescription medications Straw is currently taking, including lithium, Lexapro and Ambien.

The attorney said he didn't sign off on Straw's plea agreement.

Dressed in a suit, Straw confirmed his name for Magistrate Jon Scoles Monday in what was his first appearance in court on the charges. He answered "yes" and "no" to a few questions but otherwise remained quiet.

Assistant U.S. Attorney Sean Berry, who is prosecuting the case, said the issue of Straw's mental health didn't come as a surprise, and he had been talking to Stokke about the matter earlier. Berry said he will request for an evaluation of Straw.

But he said if Straw is found competent and pleads innocent after the exam, the government would pursue additional charges. Those would be entered during the indictment phase.

After the hearing, Straw was processed by officials with the U.S. Marshals Service, but Berry said Straw won't be detained at this time.

As part of his release, Straw has to maintain contact with a probation officer, not travel more than 100 miles from home and continue with his medication and treatment programs.

Berry said Straw may be taken into custody in the future so the U.S. Bureau of Prisons can examine his mental status.

A Jan. 7 status hearing was sent, and the trial was tentatively scheduled for Feb. 2.

In November 2007, state regulators pulled Straw's insurance license following complaint he withdrew funds from annuity accounts without his clients' approval, misled customers and forged signatures on documents.

Agents with the U.S. Postal Inspection Service and the FBI investigated the matter. They also uncovered a scheme where he allegedly collected almost $400,000 from by selling an apartment building in South Dakota that belonged to a client.

Contact Jeff Reinitz at (319) 291-1578 or Jeff.Reinitz@wcfcourier.com