Theodore J. Longust, a former business relationship manager for the $1 billion Scott Credit Union in Edwardsville, Ill., pleaded not guilty on Dec. 4 in U.S. District Court in East St. Louis, Ill. to nine felony charges of fraud, misapplication of funds and money laundering allegedly involving millions of dollars.
Longust, 50, formerly of Columbia, Ill., was indicted Nov. 18 by a federal grand jury.
The indictment alleged Longust submitted a false report that misstated loan balances and omitted loan amounts and underreported loans of more than $12 million. Longust submitted the report to Scott President/CEO Frank A. Padak and Chief Lending Officer Craig Burkhard last year, according to the indictment.
Recommended For You
According to a financial affidavit filed and signed by Longust, he is unemployed and holds $45,000 in credit card debt, a $160,000 mortgage and a second $40,000 mortgage. The financial institutions holding those mortgages were not identified. Longust also holds a $43,000 IRA.
Longust's trial is scheduled for Feb. 1, 2016.
This criminal indictment may be related to a civil lawsuit filed in April by David Butz, a former NFL star, and Eugene Schill in St. Clair County Circuit Clerk's office in Belleville. They accused the credit union of consumer fraud and negligence involving millions of dollars.
Padak, the credit union's board members, chief executives, vice presidents and Longust were named as defendants in the civil suit, which caught the interest of FBI investigators.
A September CU Times inquiry confirmed the FBI was conducting an investigation, with which Scott employees fully cooperated.
© 2025 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.
Peter Strozniak
Credit Union Times reporter covering credit union operations, fraud, M&As, leagues, business continuity, and breaking news.
