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Credit union executive's conviction leads to state takeover

People who live in New York and who are involved in the financial services industry know that theirs is a highly watched and regulated sector of business. While this is certainly understandable, given that professionals are in charge of other people's money, it can also provide unique challenges for banking financial services professionals as their every move may be under scrutiny.

The line between smart financial choices and criminal action can be very thin and even blurry. In some cases, people may find themselves accused of offenses that they are surprised about. One man who was the head of a credit union based in Manhattan for 11 years may well be one of these people.

As reported by Reuters, the former chief executive officer was charged with embezzling large sums of money over the course of multiple years. In the latter part of 2018, he actually entered a guilty plea in response to the allegations. It is not known, however, if his guilty plea was part of a plea bargain that may have resulted in lesser charges than what were originally entered against him.

As part of his penalty, the man will pay close to $10 million in restitution. It is not known yet if he will be required to serve time in prison or, if so, how long he may be sent to prison for. As for the credit union which he had led for so long, the New York Department of Financial Services has assumed control and named the National Credit Union Administration to act as a conservator for the institution.

 

 

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