U.S. District Court Judge Cathy Bissoon in Pittsburgh sentenced a former president/CEO of an Ohio credit union Tuesday to two years in federal prison.
In April, Charles Robert Poore, 45, pleaded guilty to embezzlement when he was president/CEO of the $50 million Toledo Metro FCU. Judge Bissoon also ordered him to pay $251,438 in restitution and serve five years of supervised released following his prison term.
Poore's lawyer, Jay J. Finkelstein requested a reduced sentence because his client had no previous criminal record, was making restitutions payments and was not a threat to the community.
But Judge Bissoon may have been swayed to send Poore to prison after reading strongly worded letters from the Toledo Metro's board of director and its president/CEO.
After the board hired Poore, who had a professional background in finance and law, the credit union began to see profits that they had never seen in the past. His performance solidified the board's faith and trust in their CEO that he was making the best recommendations and giving them the best possible advice.
“When the nature and depth of C. Robb Poore's deception were discovered, we were in absolute disbelief,” the board wrote in its victim impact statement. “We were angry and upset by the betrayal of someone we had trusted so much. We were, and quite frankly still are, appalled by the bold steps he took in order to steal from a financial institutions that went out of their way to help him on so many occasions.”
A TMFCU internal investigation revealed from December 2011 through May 2014, the credit union paid a total of $269,593 to Visa for transactions Poore made on his corporate credit card. Most of those transactions primarily paid for office equipment and supplies, according to court documents.
However, TMFCU's investigation could only account for approximately 15% of the items purchased and was unable to account for $233,933 in transactions made by Poore.
The credit union found out that Poore purchased items through his wife's Amazon account from a third-party vendor and then sold the items to TMFCU using his corporate credit card at a significantly inflated cost and profit.
For example, Poore purchased two battery backup towers for computers for about $200 from an international customer using his wife's credit card. These items were then sold from his wife's Amazon account and charged to the TMFCU corporate credit card for more than $900, according to court documents.
On July 5, 2014, the board told Poore they wanted to ask him about numerous suspicious transactions on his corporate credit card. The next day, Poore resigned and was never seen again. Federal agents, however, caught up with him in Pittsburgh.
“In retrospect, C. Robb Poore took advantage of every situation that he could,” the board continued in its letter. “He manipulated not only the books but the people around him. Had his deception not been uncovered we believe he would have continued to steal until he had ruined the financial institution known as Toledo Metro Federal Credit Union.”
In its letter, the board noted it made several changes so that no one will take advantage of the board and the credit union again.
In his victim impact statement, TMFCU President/CEO Daniel Zimolzak noted Poore tarnished the credit union's reputation that took years to build and it may take years to restore.
“Not only is the reputation risk external, but it also encompasses internal reputation, as my management team and I must now rebuild the trust and relationship the board has in our decision making process,” Zimolzak wrote. “White-collar crimes should be punished with stern judgment, just as other crimes would be. Although no blood is shed with white-collar crime, it adversely affects the lives and futures of the victims. Not considered violent in nature, it leaves the victims with a sense of betrayal and violation. In this case, Mr. Poore victimized more than 6,000 members and employees of the Toledo Metro Federal Credit Union.”
TMFCU's financial position is strong and sound.
It posted a net worth of 9.85% and an ROAA of 1.01% in the second quarter that ended June 30, according to NCUA financial performance reports. The credit union's financials also show growth in total loans and loan income.
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