Stay in the know! Sign up to get Fauquier County news updates delivered to your inbox.
Advertise on Fauquier Now!
FauquierNow.com
How much will you spend on Christmas and/or Hanukkah gifts this year? Vote!
HOME OBITUARIES NEWS HOME & GARDEN OPINIONS BUSINESS STYLE CALENDAR CLASSIFIEDS
Free classifieds! Members can also post calendar events, news, opinions and more ... all for free! Register now!
Login · Forgot Your Password?
September 14, 2017

51-month sentence imposed for defrauding local bank

Michael P. Kelkamp, 68, on Wednesday received a 51-month federal prison sentence and an order to make $10.4 million in restitution to The Fauquier Bank.
The former president of a Culpeper County company will spend 51 months in federal prison for fraud that resulted in a $10.5 million loss to The Fauquier Bank.

Michael P. Klekamp, 68, of Charlottesville, in December pleaded guilty to falsifying corporate financial records to obtain an $11.5-million line of credit in October 2015.

Mr. Klekamp committed the crimes as president of Capitol Components and Millwork Inc. Based at Elkwood near the Culpeper airport, the company manufactured and distributed architectural millwork items for mid- to high-end residential and commercial buildings.

U.S. District Judge Henry E. Hudson imposed the sentence Wednesday in Richmond and ordered Mr. Klekamp to make $10.4 million in restitution to the Warrenton-based bank.

Mr. Klekamp, whom federal prosecutors say conducted a seven-year bank fraud, has dementia according to his attorneys, the Richmond Times-Dispatch reported.

Judge Hudson considered the defendant’s health but called his crime “a major fraud . . . a calculated fraud,” the newspaper reported.

“To run its business, CCM drew money from a standard secured revolving line of credit line at The Fauquier Bank,” U.S. Attorney Dana J. Boente said in December. “The credit line agreement required CCM to submit periodic reports to the bank about the value of the underlying collateral, such as accounts receivable and inventory, and the creditworthiness of CCM.”

Mr. Klekamp misrepresented his company’s true financial condition and made a variety of false statements to the bank about the true amount and quality of the collateral, according to court documents.

“On Oct. 25, 2015, Klekamp submitted documents to the bank fraudulently stating there was approximately $17 million of total accounts receivable and inventory securing the bank’s $11.5 million credit line, while in actuality there was no more than $3.4 million of total accounts receivable and inventory,” Mr. Boente said. “Contrary to the fake financial statements submitted to the bank, CCM was not able to repay the interest or principal amount of the loan, resulting in a loss of approximately $10.5 million as a result of the scheme.”

Mr. Klekamp faced a maximum penalty of 30 years in prison when sentenced in the U.S. District Court. The prosecutor recommended a sentence of 51 to 63 months.

The loss that resulted from Mr. Klekamp’s fraud turned what had been a good year into a disaster for Fauquier Bankshares and its stockholders.

The Warrenton bank holding company ended 2015 with a $600,000 loss.

CCM’s website has disappeared. It’s Facebook page says the company “is closed for business and no longer open.”
Member comments
Please, be polite. Avoid name-calling and profanity.
For credibility, sign your real name; stand behind your comments. Readers will give less credence to anonymous posts.
To comment, please log in or register.
BJ · September 16, 2017 at 3:44 pm
Trust but verify always. Wolf in sheep's clothing. Hope whoever was in charge of this fiasco has had some training to make sure this never happens again, or fired.
Facebook comments
Enter your email address above to begin receiving
news updates from FauquierNow.com via email.
Friday, December 15
Parking tickets issued, tons of food for needy, municipal spending for legal services and downtown lunch places
Friday, December 15
With market share growing slowly, German grocer scaling back plans for U.S.
Friday, December 15
“Working group” will help find alternative site for McShin Foundation’s proposed residential program
More Fauquier news
© Copyright 2011-2016

50 Culpeper Street, Suite 3
Warrenton, Virginia 20187
540.359.6574
Crime Log
Obituaries
Business
Add Your News
The Big Picture
Ellen’s Kitchen
and Garden

Features
Real Estate
For Sale
Employment
Automotive
Announcements
Legal Notices
Post an Ad
Advertise
Terms of Service