Latest "Credit Union Ethics" Posts

Credit Union Fraud Lands CEO in Jail

It is not so much a question of “how,” or even “why” a woman by the name of Fuataina Afutiti stole nearly $2 million from the Veterans Health Administration Credit Union in Detroit, but by what measure did so many look the other way?  When it comes to credit union fraud it’s critical that the board accept their fiduciary responsibility to the credit union members to safeguard their

Fraud Background Design. Criminal Offence Word Cloud Concept.

Fraud Background Design. Criminal Offence Word Cloud Concept.

assets.

The Michigan Attorney General has sentenced her anywhere from 2-1/2 years to 20 years for the theft. He called her crimes despicable, and they were, but as president and chief executive of the credit union did no one suspect she was stealing them blind?  Did the board have no interest in paying careful attention to the actions of their CEO?  Credit union fraud is serious and the repercussions can extend beyond their president and chief executive.

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Posted by Chuck Gallagher in Credit Union Ethics and tagged , , , ,

Credit Union Ethics: Former Credit Union Head Guilty of $2.5 million Embezzlement

Fraud happens for a variety of reasons.  Most fraudsters will tell you that they never intended to destroy their lives by perpetrating a fraud and break trust.  Most, like myself, started out with the best of intentions.  But there are some bad apples in every bunch Credit Union Ethicsand, it appears that Linda Lee Clark, 68, of Corydon, Iowa was a bad apple.  Clark who began working at the SCICAP Credit Union in Chariton, Iowa in 1978 admitted to embezzling  $2,494,809 of funds from the credit union from the day she started until she resigned in 2015.  This case represents a blatant violation of accounting ethics from someone who knew better.  Whether credit union ethics, banking ethics or accounting ethics – this case is nothing more than fraud pure and simple.

Credit Union Ethics (or lack thereof)

It is unclear what Linda Lee Clark did before her initial employment at SCICAP Credit Union.  According to media reports from the beginning, Clark redirected account holders’ deposits into her own personal account and the accounts of her children; and initiated unauthorized withdrawals of funds from member accounts into her own personal account and the accounts of her children. Clark concealed the embezzlement by maintaining two sets of accounting records on the Credit Union’s data processing system. When it comes to credit union ethics, it’s clear that Clark started with the intent to deceive and was smart enough to create a credible paper trail that worked for some period of time.

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Posted by Chuck Gallagher in Credit Union Ethics and tagged , , , ,