Alert staffers at the $104M Erie Community CU suspect loan fraud, break up a multi-million dollar ruse.
Charges range from forgery and money laundering to receipt of gifts for procuring loans.
The former assistant manager of the $40 million Wilkes-Barre City Employees Federal Credit Union and a police officer approached individuals to use their name to apply for loans, and then refinanced those loans or added debt to them without the individual's knowledge, according to federal indictments.
Latest charges allege Ohio men embezzled $1.9 million that led to the credit union’s collapse.
The former assistant manager and four members of the $40M Wilkes-Barre City Employees FCU plead not guilty to a straw loan scheme.
Two city police officers are among the members accused of defrauding the $40 million Wilkes-Barre City Employees FCU in Pennsylvania.
New charges from federal prosecutors include conspiracy to commit bank fraud, money laundering and making false statements.
Eva Barroso is sentenced to 27 months in prison for making false loans and spending the cash at casinos.
Duane Akuffo receives sentence for more than $530,000 worth of bogus auto loans.
Alabama business owner receives three year federal prison sentence for kiting checks at his Alabama One CU business account.