The Federal Reserve Board on Friday announced that it had prohibited Karl K. Klessig from future participation in the banking industry for fraud in his application to acquire control of Golden Pacific Bancorp, Inc., a former bank holding company in Sacramento, California.
Applicants seeking approval to acquire control of Board-regulated institutions must accurately disclose the source of funding for the acquisition. In his application, Klessig falsely represented that he had obtained a loan to finance his purchase of a controlling interest in Golden Pacific Bancorp. Following the Board's discovery of the false representations, Klessig withdrew his application.
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