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CU employee embezzles $2.1 million

By Marcie Geffner · Bankrate.com
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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18 Comments
DAWE
January 24, 2013 at 8:42 pm

I'M NOT SUPRISED, THE CU SCAMMED ME AND RUINED MY CREDIT. TWO MANAGERS WERE INVOLVED. KARMA IS GOD'S WHY OF MAKING YOU LOOK AT YOUR PAST DEEDS.

Seattle
January 24, 2013 at 8:18 pm

Besides going to Prison, Looks like she bought a one way ticket to HELL.

Ann
January 24, 2013 at 7:42 pm

I agree with Randy. I know a former pastor that was found guilty of misappropriation of funds totalling almost $400,000 from his church. Not one cent repaid and he is free, never served one day in jail, to hold services and take uop offerings in private homes and Civic Cenetrs.

Greg
January 24, 2013 at 7:36 pm

Bcuffie, we taxpayers do not bail out Credit Unions via NCUA. Just like FDIC Insurance funds, those monies come from fees that are paid into the FDIC by participating institutions, not taxpayer Dollars....

randy vdolder
January 24, 2013 at 6:59 pm

Some "Poor" soul robs a convenience store or takes a wallet for cents and gets 15 years. Millions stolen by a white collar…less than nothing. Justice is not blind.

Andrew
January 24, 2013 at 6:38 pm

what about ths to big to fall banks ?we are toking billions $$$$ is any of this crilinals go to jail ????

Bcuffie
January 24, 2013 at 6:16 pm

The embezzler should have been sentenced to more time for what she did. It's taxpayers who ultimately pay for the loss of funds which are insured by the government. After all, taxpayers provide the government with the funds it does not borrow to run its operations.

SueAnn
January 24, 2013 at 6:03 pm

Credit Union funds are insured, just like bank funds, so there shouldn't be anything to worry about, everything will probably be replaced I would think. What a shame though....it's got to the point where no one can be trusted anymore !

Thomas Sommerville
January 24, 2013 at 5:37 pm

One can only guess where (if any) funds that were rcovered had gone. To the CU members? Or was it HELD? as (evidence?) and for how long?

Robert Wilkos
January 24, 2013 at 5:11 pm

How much of the stolen $ was recouped?