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Convicted Fraudster Suing Credit Union He Ripped Off

Friday, February 15, 2013 - 5:46 AMLake Michigan Credit Union
From Credit Union Times
A man convicted of defrauding the $2.8 billion, 202,000-member Lake Michigan Credit Union has sued the Grand Rapids, Mich., credit union, he says on behalf of the members, because the credit did not have policies in place to detect his fraud.

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Hope this doesn't cost Lake Michigan Credit Union too much. This credit union has one of the top reward checking accounts.
5
Ken TuminKen Tumin5,471 posts since
Nov 29, 2009
Rep Points: 125,633
1. Friday, February 15, 2013 - 6:43 AM
What a guy.:D
4
51hh51hh1,476 posts since
Jan 16, 2010
Rep Points: 6,427
2. Friday, February 15, 2013 - 9:35 AM
Talk about punishing the victim! Just two more words: "Tort Reform"!
2
WilWil242 posts since
Feb 26, 2010
Rep Points: 1,285
3. Monday, February 25, 2013 - 12:15 PM
Lake Michigan Credit Union is very pleased that the court so quickly and clearly saw that the potential lawsuit filed by Michael Vorce is baseless and frivolous.  On February 21, 2013, Magistrate Judge Scoville issued an 8 page Report and Recommendation finding that Vorce’s complaint “suffers from numerous, fatal defects” and concludes that the claims set forth in Vorce’s complaint are frivolous recommending that it be dismissed with prejudice and that leave to appeal in forma pauperis  be denied.

Michael Vorce is a confessed felon serving a sentence in federal prison for criminal fraud and deceit against a number of local financial institutions, including Lake Michigan Credit Union.  Mr. Vorce defrauded these financial institutions of $27 million, of which LMCU lost $3.4 million.  Lake Michigan Credit Union was one of his many victims.  It’s also important to note that this is old news.  Michael Vorce was arrested for his crimes in 2007 and was sentenced in 2009.

We are very upset with the reporting of this story by the Grand Rapids Press and Mlive.  First, for deciding to run this story and for giving a confessed felon a platform and news attention on a frivolous complaint that clearly has no merit.  But more importantly, for the misrepresentation of the story’s headline.  It implies that LMCU experienced a loss of $27 million and that a lawsuit was underway.  Neither is true.  Lake Michigan Credit Union is requesting an apology/retraction from the Grand Rapids Press and Mlive for its inaccurate and irresponsible reporting.  

LMCU is a top-performing financial organization with almost $3 billion in assets, $5 billion in serviced mortgages, and 275,000 individuals served.  We provide superior value and service to our community.
6
LakeMichiganCULakeMichiganCU10 posts since
Jan 3, 2012
Rep Points: 25
4. Monday, February 25, 2013 - 1:21 PM
LakeMichiganCU #3, unfortunately the old journalism saw "If it bleed it leads" now appears to have grown into:  "If it's sensational it runs" - meaning that bad news - no matter how accurate or responsible - sells more than good news.

Thank you for a clear explanation of the facts regarding the story.    Judging by the comments earlier in this thread, I doubt that anyone here thought there was merit to the accusation. 

In closing, just wanted to note that as an LMCU member for over 2 years, I have been very pleased with how easy it is to do business with the credit union and impressed by the customer service.   Best wishes for your continued success.
5
pearlbrownpearlbrown1,469 posts since
Nov 2, 2010
Rep Points: 6,380
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