John Walsh, who served as chief financial officer of Affina Brokerage Services LLC, has pleaded guilty to embezzling more than $2.5 million from USAlliance Federal Credit Union, which owns the subsidiary.
According to several published reports, between June 17, 1999 and Jan. 27, 2008, Walsh allegedly transferred shares of stock from the $772 million USAlliance into his own accounts which he then sold for cash. Walsh also came up with fake stocks and then used them as collateral for loans.
On Nov. 10, Walsh pleaded guilty to first-degree grand larceny, according to the state Supreme Court in White Plains, N.Y. In addition to repaying the more than $2.5 million, he has been sentenced to serve three to nine years in prison. Walsh's sentence hearing will take place Jan. 14.
A comment from USAlliance in Rye, N.Y. or Walsh's attorney was not immediately available.
