Documents Reveal New Fraud & Corruption Allegations at MCU

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Court documents for the first time revealed new details and allegations of widespread fraud and corruption that occurred at the $3.2 billion Municipal Credit Union and involved its CEO, at least five top executives, two supervisory committee members and 13 former board members. It led to more than $18 million in financial losses and $109 million in write-down losses.

New reporting that will be published in the July 8 print edition of CU Times will show that the court documents came from a lawsuit filed in Wisconsin federal court in May by the conserved credit union and the NCUA. They are suing CUMIS Insurance Society because the Madison, Wis.-based organization is refusing to pay a $9.8 million interim insurance claim to cover some of the losses from former MCU President/CEO Kam Wong’s fraud. He was sentenced in June 2019 to five and a half years in prison after he pleaded guilty to embezzling nearly $10 million from New York City’s oldest financial cooperative.