PONTIAC, Mich.–An attorney for a former CU CFO who allegedly claimed he stole as much as $20 million is asking “everyone to step back” while he awaits “proof” of any statements his client might have made to police as well as evidence from any audits.
As CUToday.info reported here, that credit union has since been placed into conservatorship.
Michael Manley, attorney for Michael A. LaJoice, the former CFO at the $69-million Clarkston Brandon Community Credit Union who allegedly walked into a police station and admitted to the embezzlement, was quoted by the Detroit News as saying, “The community is stunned by this and there are some huge numbers being thrown around and comments attributed to him (by authorities) that I’m not certain he ever made. There are people who are upset. There are people who are angry. We want to be careful what we say at this time so as not to throw any fuel on the fire.”
Manley indicated he expects LaJoice will face additional charges beyond the 14 counts of embezzlement involving $1.9 million that was taken from the credit union in late 2015. That money was deposited into LaJoice’s personal accounts, some of which are now frozen. The $1.9-million is far less than the $20 million LaJoice allegedly told police he had taken over a 12-year period.
As CUToday.info reported here, Clarkston Brandon Community CU issued a statement earlier this week that it was “appalled” by the allegations, while reassuring members their money is safe.
CBCCU said it was first confronted with suspicions of “accounting irregularities” during a Jan. 4 audit by its regulator, the Department of Insurance and Financial Services. LaJoice did not report to work on Jan. 5, and was fired, according to CEO Donna Bullard.
The credit union was placed into conservatorship by the DFI and is being operated by NCUA.
Manley told the Detroit News he expects to file several motions next week, including to get LaJoice out of jail on bond. He said the case could also be moved to federal court, since the credit union has federal deposit insurance through the NCUSIF.
LaJoice allegedly led a lifestyle far in excess of that afforded by his $65,000 annual salary, including leading development of a downtown property, as CUToday.info reported here.