Shiloh of Alexandria Manager Looted CU Before Suicide
Embezzlement of about $10 million – and the pursuit of “sinful things” – led to the downfall of the tiny Shiloh of Alexandria FCU and its manager, according to a civil complaint filed this week by the NCUA, which is seeking to recover losses to the share insurance fund caused by the failed credit union.
The late John C. DuPree Jr., a volunteer who served as sole manager for the $2.4 million institution in Alexandria, Va., died at the age of 48 on April 4, 2013 – just one day before the NCUA was set to inspect the credit union’s records, but he left a note on his computer, confessing that he had stolen money for several years to pay for “sinful things,” said a complaint filed in the U.S. District Court for the Eastern District of Virginia.
DuPree falsified general ledger balances by replacing converted credit union funds with proceeds from CDs that were purchased by non-member (and often non-local market) participants, which he had not posted to Shiloh’s financial records, the complaint said.
He altered records to hide his misappropriation and conversion of member funds, the lawsuit said, and he did not timely or accurately post members’ transactions to their accounts, the complaint said.