RICHMOND, Va. – In a stunning turn of events, 67-year-old Michael P. Klekamp of Charlottesville has pleaded guilty to charges of bank fraud that resulted in a staggering $10.5 million loss at Fauquier Bank.
Klekamp, the President of Capitol Components and Millwork, Inc. (CCM), was accused of masterminding a scheme that siphoned millions from the bank using fraudulent financial reports. CCM, based in Culpeper, specialized in the manufacture and distribution of high-end architectural materials for residential and commercial buildings.
According to court documents, Klekamp manipulated the bank’s credit line by fabricating the value of CCM’s collateral, including accounts receivable and inventory. On Oct. 25, 2015, he fraudulently claimed the company had $17 million in assets backing a $11.5 million loan, when in reality the actual value was closer to $3.4 million.
The deceitful reporting led to CCM’s inability to repay the loan, causing the bank a significant financial loss. Klekamp now faces a maximum penalty of 30 years in prison when sentenced on March 24, 2017.
U.S. Attorney for the Eastern District of Virginia, Dana J. Boente, and FBI Special Agent in Charge Adam S. Lee announced the plea agreement following its acceptance by U.S. District Judge Henry E. Hudson. The investigation into this case was conducted by the Richmond Division, Charlottesville Resident Agency of the FBI, with Assistant U.S. Attorney David T. Maguire leading the prosecution.
For more information and related court documents, visit the websites of the U.S. Attorney’s Office for the Eastern District of Virginia or search Case No. 3:16-CR-141 on PACER.
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Key Facts
- State: Virginia
- Agency: DOJ USAO
- Category: Fraud & Financial Crimes|Public Corruption|White Collar Crime
- Source: Official Source ↗
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