NCUA Receives $5.4 Million From Fraud Prosecution
The NCUA announced Thursday it received almost $5.4 million in restitution from a fraud prosecution, which will be returned to the share insurance fund.
In August 2012, Laura Conarton and her son, Scott Lonzinski, pleaded guilty in U.S. District Court to financial institution fraud.
“The two provided false documents to the credit union in order to obtain approximately $14 million in loans, which BCT Federal Credit Union was required to write off,” the NCUA said in a press release. “They are serving federal prison sentences. The $5,391,641 recovery followed the seizure of bank accounts and property by the U.S. Attorney’s office.”
The prosecution followed the liquidation of BCT Federal Credit Union in Binghamton, N.Y. The $3.3 billion Visions Federal Credit Union of Endicott, N.Y., purchased and assumed the credit unions liabilities, assets and member shares.
“An alert NCUA examiner uncovered this fraud, and diligent work by the U.S. Attorney’s office and the NCUA’s Asset Management and Assistance Center made this recovery possible,” Board Chairman Debbie Matz said in a statement.
Richard S. Hartunian, U.S. Attorney for the Northern District of New York, credited the Forfeiture Litigation Unit for recovering the losses.
“While much of what the fraudulently obtained money was spent on can never be recovered, our office seized seven vehicles, three bank accounts, two real estate properties – one home and one vacant piece of land – and cash. It is through these forfeitures that we are able to partially restore the losses to the NCUA,” he said in a statement.