Long gone are the days of hiding your money in a coffee can. If you want to be able to show that you possess the ability to finance a house, new vehicle or college education, you must provide financial statements to your potential lender.
Although you are likely aware that your financial accounts are insured up to $250,000, you may not consider that there could be a problem with a person to whom you entrust your money. However, just because someone works at a bank or credit union does not mean you can trust them.
Former credit union CEO pleads guilty to charges of fraud
Many Americans choose a credit union to handle their finances. Rather than a bank, these cooperatives are run by their members and operate on the principle of helping people, rather than seeking large profits.
Consumer credit unions often help their members improve their financial situations. However, the former CEO of the Little Falls St. Francis Campus Credit Union allegedly stole more than $10 million. Some reports assert this caused the union’s collapse, affecting well over 3,000 members.
After pleading guilty to felony charges of credit union fraud, the former CEO faces penalties which include:
- Incarceration
- Supervised release
- Substantial fines
- Restitution, the amount of which has yet to be determined
And while $10 million is a significant amount of money anywhere, fraudulent activity of this scope could be devastating for this farming community.
The economy in Little Falls
In 2017, the median household income in Little Falls was $37,201 – nearly 62% of the nation’s $60,336 median. And although more than 17% of the city’s residents live in poverty, with a median age of 42, it is possible that they are trying to focus on saving for retirement.
But accusations can initiate anywhere. Do you know what to do if they involve you?
What can you do if you face allegations of fraud?
If you face accusations of committing fraudulent activity, you need to protect your interests. An attorney can work with you to defend your rights and fight for a favorable outcome in your case.