Judge bangs gavel. Source: Shutterstock.

A week after Fuataina Afutiti walked out of a Michigan prison in October 2020 for embezzling more than 65% of the assets of a now-defunct Detroit credit union, she filed for bankruptcy.

Persons unable to pay back their debts file for Chapter 7 bankruptcy, which discharges their debts. Although federal law prohibits discharging court-ordered restitution, the NCUA nevertheless had to file a complaint in January to determine whether the restitution she owed could be discharged. The former CEO of the $3.3 million Veterans Health Administration Credit Union embezzled $2,215,032 from the financial cooperative that served local veterans and their families.

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