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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