Fraud and Cocaine; Borinquen FCU’s Former CEO Pleads Guilty
Ignacio Morales, former CEO of the $7 million Borinquen Federal Credit Union, pleaded guilty Sept. 4 to embezzling $2.3 million and causing the institution’s 2011 collapse. And, according to court documents, a former board member may also be guilty of defrauding the community development credit union.
Morales admitted to fraud, embezzlement, money laundering, failing false income tax returns and possession of cocaine with intent to distribute. He faces 10 years in prison at his Dec. 7 sentencing, but that time could be reduced in exchange for cooperating with investigators, local Philadelphia media reported.