KANSAS CITY -- A northeast Kansas man has admitted taking part in a fraud scheme that prosecutors say cost a bank more than $877,000.
The U.S. Attorney's office says 56-year-old Timothy P. Fitzgerald, of Leawood, pleaded guilty Monday to conspiracy to commit bank fraud. He faces maximum penalties of 30 years in federal prison and a fine up to $1 million.
Fitzgerald was the chief financial officer of KC United LLC, a holding company for five construction services companies in Kansas City, Kansas. He admitted conspiring to doctor KC United's financial statements to falsely show a profit, then submitted them to Bank of Blue Valley.
Three of KC United's companies later filed for bankruptcy. The bank then sustained the loss when it sold its position in a remaining outstanding loan to KC United.