John Walsh, who served as chief financial officer of Affina Brokerage Services LLC, has pleaded guilty to embezzling more than $2.5 million from USAlliance Federal Credit Union, which owns the subsidiary.According to several published reports, between June 17, 1999 and Jan. 27, 2008, Walsh allegedly transferred shares of stock from the $772 million USAlliance into his own accounts that he then sold for cash. Walsh also came up with fake stocks and then used them as collateral for loans.On Nov. 10, Walsh pleaded guilty to first-degree grand larceny, according to the state Supreme Court in White Plains, N.Y. In addition to repaying the more than $2.5 million, he has been sentenced to serve three to nine years in prison. Walsh's sentence hearing will take place Jan. 14.A comment from USAlliance in Rye, N.Y., or Walsh's attorney was not available by press time.In January, Joann Kay, assistant vice president of marketing at USAlliance, confirmed with Credit Union Times the details in several local reports at the time that said Walsh unlawfully transferred stock from Affina Brokerage into accounts under his management and sold the shares for his personal use (CU Times, Jan. 21, 2009). Kay also confirmed that Walsh came up with fake stock positions that were used as collateral for loans.–[email protected]

Continue Reading for Free

Register and gain access to:

  • Breaking credit union news and analysis, on-site and via our newsletters and custom alerts.
  • Weekly Shared Accounts podcast featuring exclusive interviews with industry leaders.
  • Educational webcasts, white papers, and ebooks from industry thought leaders.
  • Critical coverage of the commercial real estate and financial advisory markets on our other ALM sites, GlobeSt.com and ThinkAdvisor.com.
NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.