A former executive of a Topeka lumber company faces federal charges after allegedly defrauding a Lawrence bank of $15.2 million five years ago.

John Duncan, 52, was indicted Wednesday on one count of bank fraud and one count of money laundering, according to a news release issued by the office of U.S. Attorney Barry Grissom. Federal prosecutors have accused Duncan, who was the chief financial officer of Schmidt Builders Supply Inc., of making false statements in a $15.2 million loan application to University National Bank, 1400 Kasold Drive.

The loan was made to finance the construction of apartments in Junction City. Duncan, who was also a partner in that project, wrote a letter to the bank falsely claiming that Schmidt Builders held more than $1 million in lumber to be used as collateral for the loan, according to prosecutors.

The money laundering charge alleges that Duncan made a wire transfer of money obtained through bank fraud.

Schmidt Builders maintained six locations, including a store in Lawrence and a lumberyard in Topeka, until the business failed and its assets were seized by creditors in 2011. At the time, the story was covered in some detail by the Topeka Capital-Journal.

If convicted, Duncan could face a maximum sentence of 30 years in prison and a $1 million fine for bank fraud and a maximum of 10 years for money laundering.