New York seizes state's oldest credit union after ex-CEO's embezzlement plea

[turbinetree]

Source: Reuters

U.S. Legal News
May 17, 2019 / 5:13 PM / Updated 2 hours ago

Jonathan Stempel

NEW YORK (Reuters) - New York’s top financial regulator on Friday seized the state’s oldest credit union, Municipal Credit Union, saying it suffered from “unsafe and unsound” conditions after its former chief executive pleaded guilty to embezzlement.

The seizure by New York’s Department of Financial Services followed Kam Wong’s guilty plea last Nov. 19 in federal court to embezzling millions of dollars from the Manhattan-based credit union, which he led from 2007 to 2018.

Linda Lacewell, the state’s acting financial services superintendent, said her office appointed the National Credit Union Administration as the credit union’s conservator.

She said the regulators will work to ensure that members’ funds are protected and services continue uninterrupted.

Read more: https://www.reuters.com/article/us-new-york-credit-union/new-york-seizes-states-oldest-credit-union-after-ex-ceos-embezzlement-plea-idUSKCN1SN2LQ?il=0

[mpcamb]

1. In these cases I always wonder where the money went. Off shore? local 'laundry'?

It ain't stuffed in a mattress.
And its route to wherever likely involves co-conspirators.