Credit union employee admits to embezzling $370K

A Cookeville credit union employee admitted to a major embezzlement case Monday.

Latisha Cochran, 36, admitted to issuing fraudulent loans to fictitious borrowers while she worked at the Middle Tennessee Federal Credit Union.

Prosecutors said Cochran used the money from the loans on personal items, and to obtain credit cards to make more personal purchases.

In all, Cochran admitted to taking more than $370,000, all of which she will have to pay back.
Cochran also faces up to 30 years in prison and a fine of up to $1 million.

Two More Charged in Taupa Lithuanian Fraud Case

Two Ohio men were charged Tuesday for allegedly embezzling nearly $1.9 million in a massive fraud case that led to the collapse of the $23.6 million Taupa Lithuanian Credit Union in Cleveland in July 2013, according to the U.S. Attorney’s office in Cleveland.

Gary Chaney, 49, of Streetsboro, and Patrick Bruckman, 58, of Chester Township, both Cleveland suburbs, were each charged with one count of conspiracy to commit theft or embezzlement from a credit union.

Bruckman and Chaney maintained personal accounts at the cooperative, as well as a corporate account for Network Systems Engineering a computer consulting firm they owned, according to the court documents.

These two men and four others including Alex Spirikaitis, Taupa Lithuanian’s former president/CEO, allegedly conspired to defraud the credit union from 2007 through 2013.

The fraud case caused a $33.5 million loss to NCUSIF, according to the NCUA Office of Inspector General’s material loss report.

Bruckman and Chaney allegedly wrote checks drawn on their personal and corporate accounts for which there were insufficient funds, court papers show.

Chaney withdrew approximately $241,000 from his personal account. Bruckman withdrew approximately $63,000 from his personal account. Both collectively withdrew $1.5 million from their corporate accounts for which there were insufficient funds. The total loss to the credit union was $1.8 million, federal prosecutors alleged.

Although Chaney and Bruckman did not have sufficient funds in their accounts to cover their withdrawals, Spirikaitis allowed the overdrafts to clear their accounts. Chaney and Bruckman also never submitted any credit applications or loan documentation for the money they received from Spirikaitis to cover their overdrafts, according to court documents.

Last week, John Struna, 51, of the Cleveland suburb of Concord Township, was indicted for allegedly embezzling $2.3 million from Taupa Lithuanian. He was indicted on one count each for conspiracy to commit bank fraud, bank fraud, and making false statements. He also was indicted on four counts of money laundering.

Spirikaitis pleaded guilty in February to one count of conspiracy to commit bank fraud.

He admitted to embezzling $4.2 million from Taupa Lithuanian between 2001 and 2013. With the funds, he built a $1.6 million home in an affluent Cleveland suburb, paid for a stadium luxury suite at Cleveland Browns games and bought nine vehicles, according to court documents.

Spirikaitis is scheduled to be sentenced Sept. 23.

Earlier this year, former teller Michael Ruksenas pleaded guilty to conspiring with Spirikaitis to embezzle more than $481,000 and former bookkeeper Vytas Apanavicius pleaded guilty to one count of conspiracy to commit embezzlement. He admitted to stealing nearly a million dollars from Taupa Lithuanian, with help from Spirikaitis.

In February, Ruksenas was sentenced to 17 months in federal prison. Apanavicius is scheduled to be sentenced Aug. 28.

Federal prosecutors expect to charge a former credit union employee who has been identified only by the  initials, A.B., according to court documents.

The NCUA and the Ohio Department of Commerce took possession of Taupa Lithuanian in July 2013 and placed it into receivership because of insolvency. The Cleveland cooperative served about 1,150 members.

Lake County businessman recharged for embezzlement of $2.3 million from Taupa Lithuanian Credit Union in Cleveland

A federal grand jury has recharged a Lake County businessman, John Struna, in the embezzlement of $2.3 million from Taupa Lithuanian Credit Union of Cleveland.

The seven-count indictment charges Struna with seven counts of bank fraud, making false statements and money laundering. The indictment replaces a one-count, $2.5 million information filed against Struna in January.

Credit union CEO Alex Spirikaitis, former teller Michael Ruksenas and Vytas Apanavicius, a Mentor accountant, have been convicted of similar charges of defrauding the Taupa credit union, according to a news release from the office of Steven Dettelbach, U. S. Attorney for the Northern District of Ohio.

“This defendant is charged as part of a group that used others' hard earned savings as a personal piggy bank,” Dettelbach said in the release. “Mr. Struna’s greed has caught up with him with this indictment.”

The National Credit Union Administration and the Ohio Department of Commerce placed Taupa into receivership last year, due to its insolvency. The credit union had about 1,150 members and assets of approximately $24 million, according to the U.S. Attorney’s office.

Broken Arrow Woman Sentenced for Bank Fraud and Tax Evasion in Oklahoma

A former manager of a credit union was sentenced on Tuesday to serve 27 months for each count of bank fraud and tax evasion, announced U.S. Attorney Danny C. Williams Sr. for the Northern District of Oklahoma and Special Agent in Charge R. Damon Rowe of the Dallas field office for the Internal Revenue Service Criminal Investigation.

Eva Barroso, 54, of Broken Arrow, was sentenced to serve 27 months in federal prison by U.S. District Judge Chief Judge Gregory K Frizzell for one count each of bank fraud and tax evasion. At the time of the scheme, Barroso worked as a commercial services manager for Oklahoma Central Credit Union (OCCU) where her duties included marketing and servicing commercial loans. The Court entered a criminal forfeiture money judgment against the defendant in the amount of $238,177.42 representing proceeds obtained as a result of his bank fraud scheme. Barroso was also ordered to make restitution in the amount of $238,177.42 to OCCU and $57,360.50 to the Internal Revenue Service.

According to court documents, from July 2, 2009 to March 19, 2012, as part of the scheme, Barroso fabricated at least three false loans in the name of nominee entities and individuals without the knowledge and authorization of the purported borrower. Barroso admitted that she made various material false representations in obtaining these loans. She used the proceeds of these loans for her own personal benefit, including making ATM withdrawals at various casinos. To further the scheme, Barroso used some of the money to make payments on prior loans.

In addition, during the 2010 calendar year, Barroso willfully evaded a large part of income tax by failing to report to the Internal Revenue Service a total of $152,098.13 which was the money she fraudulently obtained from the scheme.

The case was investigated by the Federal Bureau of Investigation and Internal Revenue Service Criminal Investigation and was prosecuted by Assistant United States Attorney Jeffrey Gallant and Catherine Depew on behalf of the United States.

Credit Union Manager Cops to $175K Embezzlement in Kansas

In U.S. District Court in Topeka, Kan., former credit union manager Karolyn J. Stattelman pleaded guilty Tuesday to theft of credit union funds, admitting she embezzled $93,500.

Stattelman, 42, of Topeka, manipulated accounts at the merged $1.5 million Jayhawk FCU in Lawrence for money orders, share drafts, ATM and returned checks to conceal her theft, according to federal prosecutors at the U.S. Attorney’s Office in Topeka.

Earlier this year, because of Jayhawk FCU’s poor financial condition, the NCUA approved the cooperative’s consolidation with the $226 million Mid American Credit Union in Wichita.

The 1,092-member credit union posted a net worth of -5% as of Dec. 31, 2013, compared to a peer average of 18%, according to NCUA financial performance reports.

Last year, Jayhawk FCU reported a net loss of $260,047. Though the credit union posted a net gain of $1,692 in 2012 and $1,684 in 2011, it reported net losses to the NCUA of $68,461 in 2010 and $42,409 in 2009.

Stattelman also admitted to allowing a teller steal $81,000 from the credit union, federal prosecutors said.

The teller, Christi Marie Hout, 38, of Lawrence, pleaded guilty last week in U.S. District Court in Topeka to one count of theft of credit union funds.

In her plea, Hout admitted to writing checks on her personal account and her husband’s business account, and then posting ATM debits when there were insufficient funds in the accounts to cover the transactions, according to federal prosecutors.

Hout used credit union funds to pay personal expenses, and admitted she Stattelman was covering up the thefts, federal prosecutors said.

Sentencing hearings have yet to be scheduled for Stattelman and Hout, federal prosecutors said. They each face a maximum of 30 years in federal prison and a fine of up to $1 million.

Ex Credit Union Head Charged with Embezzlement, Bank Fraud, ID Theft in Virginia

A federal grand jury sitting in the United States District Court for the Western District of Virginia in Roanoke has charged the former manager of the Lynrocten Federal Credit Union in Lynchburg (LFCU) with embezzlement, bank fraud and aggravated identity theft charges.

In and indictment returned under seal on June 5, 2014, and unsealed today following the defendant’s initial court appearance, the grand jury has charged Linda Sue Newcomb, 62, of Madison Heights, Virginia, with one count of embezzlement of funds from a federal credit union, four counts of bank fraud, and three counts of aggravated identity theft.

In January 2014, the former head teller of LFCU, Teresa Wieringo Humphries, 58, of Madison Heights, Virginia, waived her right to be indicted and pled guilty to an information charging her with one count of embezzlement by an employee of a federal credit union.

The indictment alleges that in or about 2000, Ms. Newcomb, who was hired by the LFCU in the mid-1980s, and the former head teller at the bank, Teresa Humphries, carried out a scheme to defraud, embezzle, and steal funds from LFCU’s deposits and accounts.

It was part of the scheme that Newcomb and Humphries originated loans in the names of LFCU members without those members’ knowledge or consent. Newcomb and Humphries drafted fictitious loan documentation and approved the fictitious loans in order to make false loans look legitimate.

In addition, the indictment alleges that from on or about October 22, 2009 and continuing to on or about October 6, 2011, Newcomb entered into Loan Participation Agreements with another federal credit union. In furtherance of the loan participation scheme, Newcomb, on behalf of LFCU, sold various fraudulent loans. In order to persuade the partner credit union to enter into the Loan Participation Agreement, Newcomb made various false statements to make the loans involved appear to be authentic and legitimate.

The value of the fraudulent loans involved in the loan participation scheme was in excess of $1 million.

The indictment also alleges that Newcomb and Humphries transferred funds and wrote checks on certain LFCU members’ accounts without their knowledge or consent. At least three different accounts are alleged to have been used by the two defendants. Certain proceeds from the schemes were deposited to the LFCU bank accounts of Newcomb, Humphries, and their family members or were used by the two defendants to make “payments” to other fraudulent loans.

In order to conceal the unauthorized use of LFCU member accounts, and in furtherance of the scheme, Newcomb and Humphries altered and withheld LFCU member statements.

The investigation of the case was conducted by the United States Secret Service, the Federal Bureau of Investigation, the Lynchburg City Police Department, and the Amherst County Sheriff’s Office. Assistant United States Attorneys Anthony Giorno and Daniel Bubar are prosecuting the case for the United States.

Credit union head from East Alton admits embezzlement

 The former president of a credit union pleaded guilty to bank fraud and admitted using his bank position to cover up his theft from a trade association, federal prosecutors said Tuesday.

Paul C. Smith, 54, of East Alton, began working for the Laclede Community Credit Union in November 1977 and resigned as president on June 29, 2012, prosecutors said.

He was also treasurer of a credit union trade association.

Prosecutors say Smith used the association's credit card to get cash and make purchases totaling $58,286 from 2007 to 2012, then used the bank's computers to conceal the theft and ensure that the expenses would not be incurred by the association.

Smith was indicted Nov. 20 and pleaded guilty Monday.

Poor Oversight Blamed for $320K Embezzlement

Due to a lack of oversight at a small Illinois credit union, two employees were able to embezzle more than $320,000 in separate incidents that spanned many years, according to the U.S. Attorney’s Office.

Kimberly Kent, 53, a former manager at the $4.2 million Milledgeville Community Credit Union who also served as an elected official for a small Illinois town, was sentenced July 14 to eight months in federal prison for embezzling more than $220,000 from the credit union from 2005 to 2012, the court documents said.

In addition to prison, Kent was also sentenced to two years of supervised release and a $5,000 fine.

Kelsey Selman, 37, a former teller at the 850-member institution in Milledgeville, Ill., who admitted embezzling more than $100,000 from 2007 to 2012, was sentenced in May to two days in prison, three years of supervised release and a $4,000 fine, the documents said.

Assistant U.S. Attorney Scott R. Paccagnini, who prosecuted both cases, stated in court that the two women, who were among three employees at the credit union, took advantage of the institution’s minimal oversight.

In an interview with CU Times, Paccagnini said one of the most unusual aspects of the cases is that both women have already repaid the credit union for money stolen.

“Both of them paid back the money as they resigned,” he said.

In addition to $231,823.15 in restitution Kent already paid to the credit union, she was ordered to pay $10,176.72 in restitution to Milledgeville Community Credit Union and $5,278.75 to Wysox Township to cover investigative costs, Paccagnini said.

The latest two cases follow a string of internal fraud allegations recently uncovered at Illinois credit unions. Other recent cases include Paul C. Smith, a former president of Laclede Community Credit Union and former treasurer of a Illinois Credit Union League chapter, who recently pleaded guilty in U.S. District Court in St. Louis to using the chapter’s debit card for almost $60,000 in personal expenses over five years. Charles Juska, former president of the $25 million Tazewell County School Employees Credit Union in Pekin, Ill., recently pleaded not guilty to misapplying more than $500,000.

In the latest case at Milledgeville Community CU, both former employees pleaded guilty earlier this year.

In Selman’s plea agreement, the ex-teller confessed to applying fake credits to her personal account, which caused the credit union’s records to falsely reflect that her cash drawer increased by an amount to offset the deposit into her account.

In the other case, Kent, who also served as treasurer of Wysox Township, admitted in a plea agreement that she used fraudulent loans and town funds to conceal her fraud at the credit union.

Prosecutors say the contrast in sentencing is due to the extent of the crimes and the attempts to conceal the fraud.
Although Kent and Selman stole the money for personal use, Kent went to great lengths to conceal her crime and may have purposely covered up Selman’s fraud, the documents said.

To conceal her own fraud, Kent created fictitious loans and certificates of deposits using names of family members, the documents said.

After being elected treasurer of Wycox Township in 2009, Kent began using the town’s accounts at the credit union to cover her embezzlement, the plea agreement said.

For almost two years, she moved money into and out of Wysox Township’s accounts at the credit union, transferring a total of $175,000 from a township account to cover up her credit union fraud, the court records said.

After it became clear that the credit union would uncover her illegal activity, Kent resigned and provided information to the auditor.


Both women faced a maximum sentence of 30 years’ imprisonment, up to five years of supervised release and up to $1 million each in fines.

During the sentencing hearing for Kent, an attorney representing the former manager requested a lighter sentence due to Kent’s “good character, cooperation, payment of restitution in full prior to criminal charges being commenced and her psychological diagnosis,” the court documents said.

A doctor who testified at Kent’s sentencing said the former manager embezzled because she believed it was a family need and want, which stems from her family history, and that she would pay back the funds, the court documents said.

However, Kent and her defense team did not explain how someone with a diminished capacity could go to such great lengths to conceal their crime, the documents said.

In response, prosecutors cautioned the court to not overlook the fact that defendant committed the crimes over the course of many years.

Prosecutors said the sentencing needed to reflect the seriousness of the crime, promote

respect for the  law, provide just punishment for the offense and deter criminal conduct by others.

Although defendants may be entitled to lower sentences if they have a significantly impaired ability that causes lack of restraint to control wrongful behavior, there must be a link between the defendant’s diminished capacity and the commission of the offense to warrant a lower sentence, prosecutors said.

“While defendant characterizes herself as law abiding, she fails to account for the more than six years of her life that included the day-to-day, week-to-week, and month-to-month taking of monies from the credit union,” prosecutors stated in the court documents. “As a supervisor with no oversight, defendant’s actions went unchecked and the government has little doubt that but for the other employee’s embezzlement, defendant’s embezzlement would be ongoing to this day.”

Unlike Selman, who stole from her teller drawer and did not conceal her illegal activity, Kent created fictitious loans and certificates of deposit, and used other accounts and her position as an elected official and credit union manager to move money in order to hide her illegal activity.

“Such actions do not evidence someone operating with a diminished capacity,” prosecutors stated.                                              

“The government also notes that it is likely defendant knew of the other employee’s embezzlement and did nothing to avoid scrutiny on the credit union that would possibly reveal her own embezzlement,” the documents said. “The credit union’s system at times identified such large amounts of supposed cash on hand in the other employee’s teller drawer that defendant would have to have noticed.”

At one point, Kent electronically lowered Selman’s cash drawer amount, the documents aid.

In addition, Kent wrote the letter of resignation for Selman, which the former teller copied word for word, the documents stated.

During Kent’s sentencing, prosecutors also shot down another attempt for sympathy and leniency.

“The government has no doubt that defendant’s crime has brought unwanted community attention to her family and that her imprisonment will have an adverse impact on her family,” the court documents said. “An adverse impact on family is, sadly, a natural consequence of an individual’s decision to engage in criminal activity. When an individual is incarcerated, it is expected that his family life will suffer.”

Milledgeville Community Credit Union embezzlement brings 8-month term

A former manager of Milledgeville Community Credit Union, also a former Wysox Township treasurer, was sentenced to 8 months in federal prison for embezzlement and ordered to pay more than $15,000 in restitution.

Kim Kent, 53, pleaded guilty in February to embezzling $219,600 from October 2005 to February 2012. She also must pay a $5,000 fine, and serve 2 years of supervised release, the first 6 months on home confinement, according to a news release from the U.S. attorney's office in Rockford.

Kent must pay the credit union $10,176.72 and the township $5,278.75. She already has paid $231,823.15 in restitution, the release said.

To conceal her embezzlement, Kent created fictitious loans using names of family members and fictitious certificates of deposit. After she was elected treasurer of the Milledgeville-based township in 2009, she used money from the township's credit union account to cover her embezzlement.

In February, Kelsey Selman, 37, a former teller at the credit union, also pleaded guilty to embezzlement.

She was sentenced in May to 2 days in prison and fined $4,000, on top of the $100,975.74 in restitution that she paid to the credit union shortly after she was fired, court documents say.

Selman used the credit union's computer system to apply credits to her personal account, and so its records falsely showed that the money in her cash drawer increased by an amount to cover the fake deposits.

Former credit union employees plead guilty to embezzlement

Two former employees of Milledgeville Community Credit Union have pleaded guilty to embezzling money in separate cases.

As part of a plea agreement, Kim Kent, 53, the credit union’s former manager, pleaded guilty Monday in federal court in Rockford to embezzling $219,600 from October 2005 to February 2012.

And former credit union teller Kelsey Selman, 37, admitted that she embezzled $100,975 from the credit union, according to a news release from Zachary T. Fardon, U.S. Attorney for the Northern District of Illinois and Robert J. Holley, Special Agent-in-Charge of the Chicago office of the Federal Bureau of Investigation.

Each woman faces a maximum penalty of up to 30 years in prison, followed by five years of supervised release, and a fine of up to $1 million.

Kent’s sentencing is set for June 2; Selman’s will be May 7.

To conceal her embezzlement, Kent created fictitious loans using names of family members and fictitious certificates of deposit, according to the news release.

In 2009, she was elected supervisor of the Milledgeville-based Wysox Township. She used money from the township’s credit union account to cover her embezzlement, the release said.

Selman, 37, used the credit union’s computer system to apply credits to her personal account that did not have a corresponding deposit, the release said. As a result, the credit union’s records falsely reflected that Selman’s cash drawer increased by an amount to offset the deposit into her account.

Wysox Clerk Laurie Byvick said Monday that she wasn’t aware that the women had pleaded guilty.

“I knew it would happen eventually, but didn’t know when,” Byvick said in an interview.

Todd Ewers, chairman of the credit union’s board, said the two women “totally” repaid the institution.

“This was well thought-out. This wasn’t simply taking money,” he said, adding that the women’s crimes were not connected.

Ewers, who was the supervisory committee chairman when the women committed the crimes, said the credit union was glad “that justice is finally being served.”

In March 2012, the Wysox board voted unanimously to accept Kent’s immediate resignation. The board then voided all checks issued by Kent.

In a December 2012 interview, Milledgeville Police Chief Jim Haag said he started looking into the problems in the township and credit union in March of that year. He said he identified misuse of funds at both places.

In August 2012, he said, he got a call from an FBI agent who was investigating. At the time, the FBI wouldn’t confirm the investigation with Sauk Valley Media.

The credit union, chartered in 1957, had $3.8 million in assets as of late 2012, according to the state. It has about 900 members.

Credit Union CEO Sentenced in Embezzlement Plea Deal

Anne Schaal, the former president/CEO of the $1.9 million, 492-member Aurora Firefighters Credit Union, will spend 30 days in jail for embezzling more than $36,000 from the Aurora, Ill.-based institution.

Schaal was also sentenced to 150 days in electronically-monitored home detention and three years on probation for the criminal activity that took place between January 2006 and November 2011, according the Kane County Attorney’s office in St. Charles, Ill.

As part of a plea deal with the Kane County prosecutors, the 67-year-old Schaal pleaded guilty to one felony count of theft on Feb. 14 in Kane County Court.

A gambling addiction led Schaal to steal from the credit union as well as lose more than $580,000 that belonged to her and her husband, according to The Daily Herald, a Chicago suburban newspaper. In court documents, according to the newspaper, Schaal acknowledged that she became addicted to gambling.

The former CEO also was ordered to pay more than $4,000 in fines, to undergo a psychological evaluation and to have no contact with the credit union, according to the Kane County State’s Attorney office and local media reports.

Schaal was arrested September 2012 on theft and misuse of credit card charges. At that time, she denied the charges and was scheduled to stand trial in March.

The Aurora Firefighters CU also filed a civil lawsuit against Schaal, claiming she stole the money and posted “phantom payments” to the credit union’s ledger, according to The Daily Herald, a suburban Chicago newspaper.

The lawsuit was dismissed in September 2013 after the credit union and Schaal agreed to an out-of-court settlement.

Though Schaal made a payment to the credit union to settle its claims for damages, a lawyer representing Aurora Firefighters CU declined to say how much Schaal has paid, The Daily Herald reported.

Credit union embezzlement threatens family's home in Virginia

A single father, raising two children, could be losing his home because of something he didn't do.


The problem began when a man committed suicide. In a note left behind, he admitted to stealing nearly $10 million from a faith-based credit union.
Christopher Tate is not only raising his own two children, he's helping other kids in his neighborhood, many of whom have a parent behind bars.
Now, he's the one who finds himself in a bind.
"I was shocked. I would never have guessed this would happen," he says.
Tate got a letter telling him he has to find a new place to live. And the clock is ticking.
Turns out his landlord was John Dupree, Jr., manager of the Shiloh Federal Credit Union, a faith-based credit union that had been connected to Alexandria's Shiloh Baptist Church.
The National Credit Union Administration is going after dupree's estate to get the money back.
Last April, the night before he was to meet with federal authorities, Dupree died.
The NCUA lawsuit says this note was found on his computer: "By the time you read this I will have taken my life. I have been stealing money from Shiloh Credit Union for several years now. The guilt is overwhelming and I am too big a coward to face those that I have stolen from. I regret my actions, but it is far too late for forgiveness..."
Tate is not the only victim. The credit union has been shut down, but there were hundreds of members.
The feds are still untangling the homes, cars, and other assets the former manager owned

Spirikaitis Pleads Guilty in Cleveland

Alex R. Spirikaitis pleaded guilty Monday in U.S District Court to one count of conspiracy to commit bank fraud at the failed Taupa Lithuanian Credit Union.

The 51-year-old former president/CEO could be sentenced to 30 years in federal prison and a $1 million fine for his role in the $15 million embezzlement, one of the largest in credit union history. Spirikaitis did not make a statement in court regarding the plea.

His sentencing hearing will be held May 9.

Also Monday, former Bookkeeper Vytas Apanavicius pleaded guilty to one count of conspiracy to commit embezzlement and also faces a May 9 sentencing hearing.

Apanavicius owned VPA Accounting Inc., through which he provided bookkeeping and accounting services from 1995 through 2013. He is accused of stealing nearly a million dollars from Taupa Lithuanian, with help from Spirikaitis.

Spirikaitis admitted to personally embezzling about $4.2 million from Taupa Lithuanian between 2001 and 2013. With those stolen funds, he built a $1.6 million home in an affluent Cleveland suburb, paid for a stadium luxury suite at Cleveland Browns games and bought nine vehicles.

Spirikaitis also inexplicitly used embezzled credit union funds to amass an arsenal of semi-automatic weapons and more than 10,000 rounds of ammunition that he stored at the cooperative’s office in Cleveland.

Sometime after Spirikaitis was hired at the cooperative’s president/CEO in 1995, he began to conspire with three former employees and members to embezzle millions and managed to conceal that theft from auditors, the board of directors and members.

For years, the six individuals wrote checks against their credit union accounts with the understanding that Spirikaitis would not require them to make personal deposits to cover overdrafts. Additionally, Spirikaitis did not make personal deposits to cover overdrafts in his own accounts.

Instead, the former CEO transferred funds from Taupa Lithuanian internal accounts to cover the overdrafts. In many cases, these overdrafts amounted to hundreds of thousands of dollars.

Spirikaitis initially concealed the embezzlement scheme by simply taping over Taupa’s financial statements with false information, which he provided to auditors. Court documents also show he later used a software program to manipulate and print financial statements.

Federal prosecutors also unveiled that Spirikaitis provided Taupa’s correspondent bank, Corporate One Federal Credit Union in Columbus, Ohio, with an incorrect zip code for Taupa’s auditors, which caused the original account statements from the correspondent bank to be mailed to a post office box in Cleveland that Spirikaitis controlled, allowing him to alter the statements.

Two other individuals, former teller Michael Ruksenas and credit union member John Struna, have each been charged with one count of conspiracy to commit embezzlement.

Three more people are expected to face charges in the coming days or weeks. Those individuals have been identified in court documents only by their initials.

A.B. was a full-time employee at Taupa Lithuanian CU from 1991 to 2004 and worked part-time at the credit union from 2004 to July 2013, according to court documents. Two other individuals, G.C. and P.B. were members and provided IT services to the cooperative from a company they jointly owned, show court documents.

The NCUA and the Ohio Department of Commerce took possession of Taupa Lithuanian and placed it into receivership due to its insolvency last July.

Spirikaitis Charges Reveal Six-Person Fraud Ring

Former Taupa Lithuanian Credit Union CEO Alex R. Spirikaitis was charged Wednesday with conspiracy for his role in defrauding the credit union out of $15 million.

Spirikiaitis used some of those stolen funds to build a $1.6 million home, pay for a luxury suite at Cleveland Browns games, buy nine vehicles and amass an arsenal of semi-automatic weapons and more than 10,000 rounds of ammunition he stored at the cooperative’s Cleveland office, according to federal prosecutors.

Spirikaitis, 51, was charged with one count of conspiracy to commit bank fraud. His arraignment in U.S. District Court has not yet been scheduled.

He personally embezzled about $4.2 million from Taupa Lithuanian CU between 2001 and 2013, federal prosecutors charge.

“This defendant stole millions of dollars from credit union members who entrusted him,” Steven M. Dettelbach, U.S. Attorney for the Northern District of Ohio said. “He lived a life of luxury based on stolen money and now he must own up for those actions.”

Spirikaitis also conspired with six people – two that have been charged – and four others who were identified only by their initials, according to a prepared statement from federal prosecutors. Their alleged embezzlement contributed to the total $15 million fraud.

Michael Ruksenas, who worked at Taupa Lithuanian as a teller, pleaded guilty in U.S. District Court in Cleveland in December to conspiring to embezzle more than $481,000 from the failed credit union.

As part of a plea deal, Ruksenas agreed to cooperate with and testify for federal prosecutors.

On Monday, federal prosecutors charged Taupa Lithuanian member John Struna, 51, of the Cleveland suburb of Concord Township, with one count of conspiracy to commit theft or embezzlement from a credit union.

Struna, who had personal and corporate accounts, conspired with Spirikaitis to overdraw Struna’s accounts by $2.5 million, according to the federal prosecutors.

In their prepared statement, federal prosecutors also described other people only by their initials who allegedly conspired with Spirkaitis to embezzle funds. The former CEO allegedly transferred funds to cover overdrafts for others who worked at Taupa Lithuanian or had accounts there.

They include two employees and two members, according to federal prosecutors:

• A.B., who worked at Taupa between 1991 and 2013 and withdrew more than $1.3 million, for which there were insufficient funds;
• G.C., who withdrew approximately $1 million from accounts for which there were insufficient funds between 2001 and 2013;
• P.B., who withdrew approximately $1 million from accounts for which there were insufficient funds between 2001 and 2013; and,
• V.A., who worked at Taupa Lithuanian as a bookkeeper, and withdrew approximately $120,000 from accounts for which there were insufficient funds.

The NCUA and the Ohio Department of Commerce took possession of Taupa Lithuanian last July and placed it into receivership due to its insolvency. Taupa had about 1,150 members and assets of approximately $24 million.

A Concord Township man was charged in federal court for defrauding Cleveland-based Taupa Lithuanian Credit Union out of $2.5 million, said U.S. Attorney Steven M. Dettelbach and Stephen D. Anthony, Cleveland FBI Special Agent in Charge.

John Struna, 51, was charged in a criminal information with one count of conspiracy to commit theft or embezzlement from a credit union.

"This defendant is part of a group that took advantage of the trust of hundreds of people for their own personal gain," Dettelbach said. "These criminal charges should serve as a reminder that there is no such things as free money."

"John Struna willfully overdrew his credit union accounts to the tune of $2.5 million through his relationship with a corrupt executive at the credit union," Anthony said. "The FBI will continue efforts to make sure all the individuals responsible for the collapse of the Taupa Lithuanian Credit Union are held accountable."

The National Credit Union Administration and the Ohio Department of Commerce took possession of Taupa last July and placed it into receivership due to its insolvency.

Taupa had about 1,150 members and assets of approximately $24 million, according to court records.

Credit union CEO Alex Spirikaitis and former teller Michael Ruksenas have previously been charged for their roles in conspiracies related to defrauding the credit union.

Struna maintained both personal and corporate accounts at Taupa dating back to 1995. He began a conspiracy with Spirikaitisin 2007, during which time Struna overdrew his accounts by approximately $2.5 million, according to the information.

Struna called Spirikaitis about twice a month and requested Spirikaitis' approval to withdraw additional funds. Spirikaitis made multiple transfers from Taupa's internal accounts to cover the overdrafts, according to the information.

Spirikaitis caused Taupa to make approximately 38 false and fraudulent wire transfers into Struna's personal accounts between 2007 and 2013. During that time, Struna repaid only approximately $15,000, according to the information.

In 2011, Struna requested and received $112,105 from Spirikaitis for the purchase of a condominium located in Ft. Myers, Florida. In 2012, he requested and received approximately $100,000 for an investment opportunity. At no time did Struna submit any credit applications or loan documents, according to the information.

As a result of the conspiracy, Taupa and the NCUA suffered a loss of approximately $2.5 million, according to the information.

This case is being prosecuted by Special Assistant United States Attorney Derek Kleinmann and Assistant United States Attorney Robert J. Patton. The case was investigated by the Federal Bureau of Investigation.

Former Lynchburg credit union teller pleads guilty to embezzlement

A former head teller of the defunct Lynrocten Federal Credit Union pleaded guilty in U.S. District Court on Tuesday to an embezzlement charge prosecutors say contributed to the financial institution’s collapse in the spring of 2013.
Teresa Wieringo Humphries, 58, of Madison Heights, admitted to embezzling more than $1 million from the Lynchburg-based credit union, which closed in May, U.S. Attorney Timothy Heaphy said in a news release.

Humphries had created fraudulent loans and perpetrated check-kiting schemes for more than a decade, Heaphy said. While Humphries stole more than $1 million, he said the total loss to the credit union was more than $7 million.
Humphries participated in a “massive fraud scheme” by falsifying loan documents to steal from her employer, Heaphy said.
“Her brazen and persistent acts of fraud violated the trust placed in her by the Lynrocten Credit Union and its customers,” he said in the release.
The U.S. Attorney’s Office release said Humphries worked with the credit union’s manager in the fraud, which contributed to the ultimate liquidation of the financial institution, located in a small office off Concord Turnpike. The release did not name the manager.
According to search warrant affidavits, Humphries told investigators in interviews in April and May that she and former manager Linda Newcomb had taken loans out in members’ names and deposited the funds in family members’ accounts for a decade.
Humphries later retracted the statement. Newcomb has denied all knowledge of the scheme.
Heaphy’s spokesman, Brian McGinn, said Humphries is the only person who has been charged in connection with the case. He declined to comment further.
Humphries served as the head teller at the Lynrocten Credit Union in Lynchburg since the mid-1980s, according to evidence presented in court. Beginning in 2000 and continuing until the credit union’s liquidation last year, Humphries and the manager carried out several schemes to embezzle and steal funds from the credit union’s deposits through unauthorized and fraudulent origination of loans in the names of credit union members, prosecutors said.
Humphries and the manager also used a check-kiting scheme, which involves passing fraudulent checks with the expectation that enough money will be deposited before the check is cashed, to obtain additional monies and conceal and facilitate the fraudulent scheme.
The money created through the loan and check-kiting schemes was funneled to the Lynrocten Credit Union accounts of Humphries, the manager and their family members. Between 2007 and the credit union’s failure, prosecutors say Humphries personally stole about $3,000 to $4,000 per month that was deposited into the accounts belonging to family members.
The FBI, the U.S. Secret Service and Lynchburg Police Department conducted the investigation, the release said.
At sentencing, Humphries faces a possible penalty of up to 30 years in prison and a fine of up to $1 million.

Woman accused of embezzling $20K from Credit Union

A 29-year-old woman is accused of embezzling $20,000 from the Oakland Park credit union where she worked, according to a Broward Sheriff's Office report.

Tiffany May, of Lauderhill, was charged with grand theft in connection with the missing money from Priority One Credit Union, 1900 W. Oakland Park Blvd. She was ordered held on $5,000 bail during her first-appearance court hearing Wednesday.

According to the report, May was captured in a surveillance video placing one money bag, instead of two, into the vault. When confronted, May admitted to taking the money over a period of more than three years, the report said.

She told investigators that to avoid detection, she made transfers to her till when her money drawer was counted each month.

May said she spent the money on bills, but returned $12,700 to the credit union after her employer confronted her, authorities said.

Vienna Police Investigating Alleged $90,000 Embezzlement Case in Virginia

Vienna Police are investigating the possible embezzlement of $90,000 worth of property from a credit union located in Vienna, according to a news release Friday from police.

The news release states that police are looking into a report of an employee possibly embezzling $90,000 from the Navy Federal Credit Union, located at 820 Follin Lane, SE in Vienna.

Police say that the alleged embezzlement occurred between Dec. 1, 2012 to November.

An employee reported that another employee had been suspected of taking more than $90,000.00 worth of Navy Federal Credit Union property and selling it to another company. 

The investigation is ongoing. 

Former employee sentenced for credit union theft in Kansas

A woman has been sentenced to 21 months in prison for embezzling from a local credit union, according to a spokesman for the U.S. Attorney's Office.
Carla Welborn was sentenced Tuesday in U.S. District Court in Kansas City, Kan. As part of her sentence, she was ordered to pay $329,702 in restitution, according to information from James Cross, spokesman for the U.S. attorney of Kansas.
The crime occurred between January 2009 and January 2012 while Welborn worked at the Credit Union of Leavenworth County at the Eisenhower VA Medical Center in Leavenworth.
In November, Welborn pleaded guilty to the single count of embezzlement from a credit union.
According to a written plea agreement in the case, Welborn took money from the vault of the credit union's branch office on the VA grounds.
She also reportedly targeted the accounts of credit union members who didn't receive monthly balance statements as well as those who lived out of town or were ill. She redirected mailed statements so account holders wouldn't notice they were missing funds.
If affected account holders requested statements, she sent them fraudulent documents, according to the written plea agreement.

A former credit union employee, sentenced to 21 months in federal prison for embezzlement, targeted accounts of 23 members who were either ill, near death or who lived out of town to steal more than $300,000 over four years, according to court documents.

Carla Welborn, who worked at the Veterans Administration Medical Center branch of the $7 million Credit Union of Leavenworth County in Lansing, Kansas, was also ordered by a U.S. District Judge Kathryn Vratil in Kansas City on July 30 to pay restitution of $28,002 to the credit union and $329,702 to the CUNA Mutual Group.

The documents did not reveal Welborn's title at the credit union.

CULC, which has 1,650 members, was chartered in 1956 to serve veterans, though it also serves businesses, government agencies and individuals in Leavenworth County.

Court documents show Welborn befriended many members and performed extra services for them, such as reconciling accounts and helping them pay bills, even though she was not required by the credit union to provide these services.

In addition to targeting accounts of members who were ill, near death or who lived out of town, Welborn also targeted accounts of members that she knew were not receiving monthly balance statements.

Federal prosecutors said Welborn would redirect some credit union members’ mailed statements to the bank so account holders would not notice their accounts were missing funds. And when account holders wanted statements, Welborn would mail them fraudulent statements. To keep track of the stolen money, she kept a handwritten ledger with amounts taken from each account.

Eventually, according to court documents, Welborn would write checks payable to the credit union’s bank (Country Club Bank) if there was not enough cash on hand at the credit union for her to steal. Country Club Bank would cash the checks because Welborn would indicate that the funds would be used to replenish the “petty cash account” at the credit union.

In 2010, when the credit union changed its correspondent bank to Missouri Corporate Credit Union, the “petty cash” replenishments went directly to the main office in Lansing. Because Welborn did not have access to sufficient cash on hand to steal, she began taking the money out of members’ accounts.

Welborn also took money out of the credit union’s vault, according to court documents. Although the money in the vault was supposed to be counted by at least two employees, Welborn had been covering her tracks by using her son who was working with her at VA Medical Center branch.

“Welborn would often tell her son….the vault was counted and there was no need for him to do it,” court documents state.

Welborn’s son has not been charged by federal prosecutors.

When the credit union became aware of the fraud, an accounting firm was hired to conduct a comprehensive audit, which revealed Welborn stole $304,000 from 23 credit union members from Jan. 1, 2009 to Jan. 26, 2012.

Spirikaitis Home Found Empty; Former CEO Wanted by Authorities in Cleveland

Alex Spirikaitis, former CEO of the liquidated Taupa Lithuanian Credit Union, is on the lam.

Local Cleveland news outlets are now reporting that a police standoff overnight at Spirikaitis’ home was in vain, because the FBI discovered the home was empty.

 FBI Special Agent Vicki Anderson told the Cleveland Plain-Dealer it's unclear if Spirikaitis, who has a warrant for his arrest for fraud that led to the $23 million credit union’s failure, was ever home.

The standoff began after police attempted to arrest Spirikaitis on Tuesday night. Anderson said a person at the home told police he was there but would not surrender.

Authorities are now searching for Spirikaitis and a reward is being offered for information that will help lead to his arrest.

"We will continue the investigation and hope he decides to turn himself in and make it a lot easier on everyone," Anderson told the Plain Dealer.

The Ohio Department of Financial Institutions made the decision to liquidate the credit union after determining it was insolvent and had no prospect for restoring viable operations.

The DFI named the NCUA liquidating agent and federal officials seized the credit union Friday.

Fraud was suspected after a review of the 1,154-member credit union’s financial performance reports showed a seemingly healthy credit union with 10.31% net worth, 0.78% delinquencies and no charge offs as of March 31.

However, cost of funds was reported to be 0.87%, much higher than the peer average of 0.36%.

The failed credit union’s website revealed it was not paying above average dividends to members, and liquidity was not an issue, indicating the credit union did not have outstanding borrowings that were driving up cost of funds.

The Cleveland-based credit union reported a considerable amount of cash on its books, more than $15 million as of March 31, with just $729,595 in investments. Total loans were $7.4 million during that period.

Former Montgomery County Credit Union CEO Gets Retrial In Embezzlement Case in Pennsylvania

The former CEO of a Montgomery County credit union is back before a judge for her retrial on charges that she allegedly used credit union funds to pay some of her personal expenses.

Anne Clyburn was convicted in 2010 of stealing more than $32,000 from the United Food and Commercial Workers Local 1776 Federal Credit Union

She served nine months behind bars, but the conviction was overturned last year and she was granted a new trial.

Prosecutor Steven Latzer says he’s withdrawn some of the charges related to Clyburn allegedly giving herself unauthorized raises and using a credit card to pay charges that weren’t approved by the Board.

She’s accused of cutting credit union checks to pay dental bills for her husband.

The reduced charges involve much less money than the previous conviction. The trial, which opened Thursday morning, is being heard by a judge rather than a jury