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Feds file felony credit union fraud charge against former CEO

| Mar 22, 2019 | White Collar & Federal Charges

The president and CEO who once stood at the helm of the St. Francis Campus Credit Union in Little Falls has been formally charged with felony credit union fraud by federal prosecutors. Investigators maintain that she embezzled at least $2.5 million. The losses forced the Minnesota Department of Commerce to close the financial institution in February 2014 after the FBI began investigating the credit union.

The federal case against the former executive alleges that she engaged in fraud and embezzlement between June 2006 until she lost her job in January 2014. According to federal prosecutors, she shifted money from the credit union into accounts held by her and friends and relatives who apparently received a portion of the money. She also allegedly made fake loans for credit union members without their knowledge. These fraudulent loans then supplied funds that she allegedly used to hide fictitious deposits, buy checks or remove cash from the credit union.

The federal case might not include the full scope of her alleged crimes. An audit conducted by the National Credit Union Administration suggested that she stole over $10 million. A written statement that she provided to NCUA examiners contained her confession about embezzling since the 1990s. Documentation is mostly lacking, however, because she had allegedly destroyed the credit union’s data records prior to 2011.

The prosecution of white-collar crimes is dependent upon financial records, and a person caught up in a criminal investigation might benefit from legal representation. An attorney may offer advice before someone answers questions about embezzlement. To create a defense, an attorney might question the person’s association with alleged activities and strive to prevent the prosecution of felony charges.

Source: Credit Union Times, “Former Minnesota Credit Union CEO Charged With $2.5 Million Fraud“, Peter Strozniak , March 7, 2019