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Sole Employee Of United Catholic Credit Union Charged With Embezzlement

Thursday, November 15, 2012 - 1:45 PM
From the Michigan's press release:
Michigan Attorney General Bill Schuette today announced a Toledo woman who allegedly pocketed approximately $2.1 million from the United Catholic Credit Union (UCCU) in Temperance, Michigan has been charged with Bank Embezzlement and Racketeering, both felonies punishable by up to 20 years in prison. Schuette charged Broadway after a routine examination by the Office of Financial and Insurance Regulation (OFIR) revealed that a substantial amount of certificates of deposit (CD's) went un-recorded on the credit union's books.

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I had written about the closure of United Catholic Credit Union in this September blog post. That's one downside to tiny credit unions. They're probably more likely to be the victim of fraud that can cause the credit union to fail. On the plus side, members who kept under the NCUA coverage limits didn't lose any money.
5
Ken TuminKen Tumin5,469 posts since
Nov 29, 2009
Rep Points: 125,077
1. Friday, November 16, 2012 - 3:26 PM
As you may recall with Metabank, depositors actually lost money.  The bank didn't fail.  The depositors had to sue the bank for recovery and recovered about 75% (offficial amount was not published) after attorney fees.  Theft, fraud, fire, etc. losses are not covered by the FDIC or NCUA.  They only cover deposits when the institution fails.  Insurance and employee bonding are supposed to be in place for the other situtations, but for about 50 depositors, it failed them.  I guess thankfully in this case, the credit union failed.
3
ChrisCDChrisCD70 posts since
Nov 18, 2010
Rep Points: 457
2. Friday, November 16, 2012 - 3:48 PM
I had forgotten about MetaBank. Here's my 2009 post that covered the lawsuits that were filed against the bank.
1
Ken TuminKen Tumin5,469 posts since
Nov 29, 2009
Rep Points: 125,077
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