United States Courthouse for the Southern District of New York United States Courthouse for the Southern District of New York. (Source: Shutterstock)

A New York federal judge denied a request by the $4.2 billion Municipal Credit Union for restitution to recover its legal and investigative costs involving its former board chair Sylvia Ash, who was convicted of obstruction of justice and making false statements to federal officers.

The credit union asked U.S. District Court Judge Lewis A. Kaplan of the Southern District of New York for restitution because Ash’s criminal conduct caused additional legal and investigative costs for MCU to determine whether former CEO Kam Wong had embezzled from the credit union and continued to pay Wong’s salary after the obstruction scheme began until Wong was fired.

Peter Strozniak

 

Credit Union Times

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