The former president of Capitol Components and Millwork Inc. (CCM) pleaded guilty in an Eastern District of Virginia federal court on December 9.
Sixty-eight-year-old Michael P. Klekamp was sentenced Wednesday to 51 months in prison for a bank fraud scheme. Klekamp fabricated manufactured and distributed architectural building materials for commercial and residential buildings. Capitol Components and Millwork financed its operation through a line of credit at Fauquier Bank, according to court documents.
Klekamp was able to maintain the credit line by concealing the real financial condition and the quality and amount of collateral of CCM. He submitted reports to Fauquier Bank on October 25, 2015, stating there was about $17 million of inventory and accounts receivable, but in fact there was only about $3.4 million. Klekamp successfully secured an $11.5 million credit line with that fraudulent report.
CCM eventually defaulted on the loan, which resulted in a nearly $10.5 million loss, according to court records