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Guilty plea to bank fraud entered by former CEO of credit union

Oregon residents might have noticed that the maximum possible sentence is often reported along with an alleged crime, despite the fact that no conviction has usually as yet been obtained. In federal cases, unless the accused persons have extensive histories of prior convictions, maximum sentences are rarely faced. In many cases of bank fraud, skilled defense attorneys can negotiate plea deals to lessen the severity of the penalties.

A former CEO of a credit union is facing federal charges related to bank fraud and the use of several schemes to swindle money from the credit union between July 2014 and August 2015. Court documents show records of an unsuccessful attempt to obtain funds by forging a contract that would give him money and privileges in the event of his employment being terminated. This effort to secure $1.1 million included an attempt to cash in life insurance and annuities policies owned by the credit union.

Federal prosecutors claim that the unlawfully obtained funds were used by the defendant to pay personal expenses, such as credit card debt, his wife's birthday celebrations and tuition fees for graduate school. Further evidence shows he collected nearly $140,000 by fraudulently indicating that a payment was made for life insurance that was already paid by the credit union. He allegedly also misrepresented his outstanding liabilities to secure a line of credit for $350,000, which was later increased to $450,000, by forging motivating documents.

Prosecutors also uncovered fraud in the defendant's actions related to the election and impersonation of fictitious members of the board of directors. The guilty plea to bank fraud charges and stealing approximately $718,000 from the credit union that was entered by the defendant was likely guided by a skilled criminal defense attorney. Under the plea deal, restitution must be paid by the defendant and ownership of a particular property must be forfeited. Individuals in Oregon who are accused of federal crimes will benefit greatly from consulting with experienced lawyers to protect their legal rights throughout the proceedings.

Source: thetimes-tribune.com, "Former credit union CEO pleads guilty to bank fraud", Terrie Morgan-Besecker, July 15, 2016

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