Thank you for sharing!

Your article was successfully shared with the contacts you provided.

In its 2016 annual report, the $2.8 billion Municipal Credit Union touted how its Internal Audit Department conducted more than 50 integrated audits in the credit union’s divisions of operations, compliance, IT and finance, and continuously audited the most sensitive areas of New York’s largest credit union by members.

Presumably, those audits included a review and testing of internal controls to detect and prevent internal fraud. But industry experts said those internal controls obviously broke down because of a serious lack of oversight by key personnel, the supervisory committee and the board of directors, which led to a multimillion-dollar fraud scandal by its CEO. While the consequences of this fraud case will have a lasting impact on MCU, industry experts offered insights about how executives may prevent similar circumstances from happening at their credit union.

Federal prosecutors alleged that Kam Wong, MCU’s president/CEO for 11 years, stole millions of dollars from the credit union through various fraudulent schemes between 2013 and 2018, and spent $3.5 million of the money on New York lottery tickets. A criminal complaint, based on the findings of a federal investigation, was filed in Manhattan’s federal court on May 8 and alleges that the 62-year-old Wong committed fraud, embezzlement and aggravated identify theft.

Peter Strozniak


Credit Union Times

Join Credit Union Times

Don’t miss crucial strategic and tactical information necessary to run your institution and better serve your members. Join Credit Union Times now!

  • Free unlimited access to Credit Union Times' trusted and independent team of experts for extensive industry news, conference coverage, people features, statistical analysis, and regulation and technology updates.
  • Exclusive discounts on ALM and Credit Union Times events.
  • Access to other award-winning ALM websites including TreasuryandRisk.com and Law.com.

Already have an account? Sign In Now
Join Credit Union Times

Copyright © 2021 ALM Media Properties, LLC. All Rights Reserved.