Embezzlement Charges for CU Manager & Head Teller
A former manager and head teller allegedly embezzled nearly half of a credit union’s total assets, according to documents filed last month in U.S. District Court in Cleveland.
Gwendolyn Dubose, 64, and Kolade Awoyade, 48, were charged with one felony count of embezzlement and one felony count of making false entries in credit union reports and records.
They allegedly stole $191,978 from the $412,775 Greater Abyssinia Federal Credit Union between 2012 and 2015, which was chartered in 1959 to serve members of the Greater Abyssina Baptist Church in Cleveland.
The NCUA liquidated the 425-member credit union in December 2015 after determining it was insolvent.
Dubose was the manager and treasurer and Awoyade worked as head teller. According to federal prosecutors, they made fake deposits and transfers of more than $191,000 into nine bank accounts they controlled. To conceal the three-year embezzlement, Dubose allegedly falsified NCUA quarterly Call Reports, posted bogus payments on personal loan accounts and recorded fake deposits on share accounts.
In 2013, an accounting firm that conducted an audit of GAFCU’s books could not issue a professional opinion about the financial condition of the credit union because its accounts were irreconcilable, according to court documents. That audit was followed by an NCUA letter of understanding that mandated GAFCU consolidate with another credit union.
During the due diligence process in November 2015 by GAFCU’s proposed merger partner, the $13.4 million Faith Community United Community Credit Union in Cleveland, numerous unaccounted transactions were identified that revealed the overstatement of GAFCU’s assets.
Following that due diligence process, Dubose and Awyade were placed on administrative leave, according to court documents.
Dubose and Awyade did not respond to a CU Times request for comment. As of Monday, they have not been arraigned on the charges in federal court.