Embezzlement and racketeering charges against a 61-year-oldwoman who stole $2.1 million from a shuttered credit union put theMichigan Credit Union League on the defensive Saturday, prompting arelease that reassured consumers credit unions safe, secure andfederally insured.

Michigan Attorney General Bill Schuette announced the chargesagainst long-time manager Sharon Broadway Thursday, following theAug. 9 liquidation of the $303,261 United Catholic Credit Unionof Temperance, Michigan.

Schuette said Broadway had been using aliases and forged checksto embezzle funds for more than 20 years, and had also pocketedcertificates of deposit rather than apply them to the creditunion's financials. A routine examination revealed the fraud.

“Members of credit unions across Michigan should rest assuredthat their money is safe and sound, and that credit unions arewell-run, sophisticated financial institutions that typically haveadequate checks and balances to avoid this type of event,” saidleague CEO David Adams. “Credit unions and regulators go to greatlengths to ensure that proper safeguards are in place so ourmembers' money is safe. Our association stands ready to assistauthorities in any way we can to get to the bottom of thisincident, which is an aberration, and to ensure that it doesn'thappen again.”

A federally insured, state-chartered credit union, UCCU waschartered in 1961, operated just one branch with Broadway as thesole employee, and served more than 200 members belonging toCatholic parishes along Michigan's border with Ohio.

Adams called the incident “extremely isolated” and added thatfraud risk is inherent in any business.

“The framework and the very nature of credit unions mitigatesthat risk significantly,” he said. “Credit unions offer depositinsurance and other insurance protections, strong regulatorysupervision by state and federal agencies and strong oversight bythe institutions' boards themselves. Credit unions have animpeccable and trustworthy record as stewards of consumers' savingsand investments.”