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CU employee embezzles $2.1 million

By Marcie Geffner ·
Thursday, January 24, 2013
Posted: 10 am ET

A woman who allegedly embezzled approximately $2.1 million from a small credit union has pleaded guilty to two felonies punishable by up to 20 years in prison.

Sharon Broadway, 61, of Toledo, Ohio, was the manager, secretary, board member and sole employee of United Catholic Credit Union in Temperance, Mich.

She was charged with the crimes by Michigan Attorney General Bill Schuette after a routine examination by the state Office of Financial and Insurance Regulation, OFIR, in Lansing discovered a substantial number of certificates of deposit went unrecorded on the credit union's books.

An investigation found that during her long-term management of the credit union, Broadway misappropriated funds, filed false financial statements, violated credit union policies and failed to comply with state and federal laws.

OFIR closed the credit union in August 2012 and appointed the National Credit Union Administration, or NCUA, as receiver. The NCUA insures credit union deposits in much the same way as the Federal Deposit Insurance Corp. insures bank deposits, so no depositors lost their money, according to the attorney general's office.

Broadway allegedly used a complex money-laundering scheme that involved forged checks and multiple aliases to conceal the transactions, then used the money as her personal funds.

She pleaded guilty one count each of financial institution embezzlement and racketeering and was sentenced last week by Judge Michael A. Weipert in Monroe County's 38th Circuit Court to 10 months to 20 years in prison.

OFIR has also prohibited Broadway from ever again working in the credit union industry in Michigan.

In a statement, Schuette said, "Whenever a Michigan family makes a deposit into an accredited financial institution, they should not have to worry about the safety of their hard-earned money or that their assets are being used for personal gain."

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March 24, 2013 at 10:53 am

The judge should make an example of her by sentencing her 20 years of hard labor. Really nail that greedy monster.

Andy Reeves
March 23, 2013 at 7:12 pm

Manager,secretary,board member and sole employee? Okay, she cannot work in Michigan anymore right? I would move to Chicago after doing my prison "minute." She should fit right in with the Barry O. crowd. What's $2MM in the face of $16TT? Sharon, email me when you get out..I'll launder money for you! Duh,hoyyyy!!!

March 22, 2013 at 11:41 pm

what did she do with all that monry? give it to the church?

January 27, 2013 at 5:09 pm

I would bet she got a new job with the IRS or Treasure Dept. She would make a very good fit.

January 25, 2013 at 1:58 am

just like a govt. worker, it free money and i can do as i please.

January 24, 2013 at 11:28 pm

I have worked for credit unions for 15+ years and have always been cognizant of being in compliance, not only for the good of our members and the credit union as a business but also because we answer to a "higher power", the NCUA. How on earth did this, so called, one employee credit union, go unnoticed by NCUA until she had done all of that harm?

January 24, 2013 at 10:19 pm

Did anyone else notice the comment that she was the manager, secretary, board member and sole employee of United Catholic Credit Union in Temperance, Mich.

Someone should have questioned a one employee credit union!

January 24, 2013 at 10:00 pm

that must have been one complex money laundering scheme if one person was able to fool an entire gov't regulatory agency year after year. you have to wonder if someone wasn't doing their job, or if they are qualified to be an examiner.