FENTON, Mo.–Authorities here say negotiations remain ongoing in attempting to unwind the approximately $18 million allegedly embezzled by the former CFO at a credit union here.
Michael LaJoice remains in an Oakland County, Mich., jail cell charged with theft from the former Clarkston-Brandon Community Credit Union, which has since been merged into another credit union. LaJoice allegedly stole the money over a 13-year period before an audit finally started raising questions and he turned himself into police. Over that time, while earning $60,000 annually at the credit union, he purchased a multi-million-dollar home, owned several local businesses, and was seeking to break ground on a multi-million-dollar downtown development project.
Seeking to resolve two criminal cases and two civil cases against him in federal and state courts, in addition to a civil lawsuit in Livingston County pertaining to his more than $1-million home, his lawyer, Michael Manley, told the Detroit Free Press, “I’m trying to come to a global resolution so there’s no loose ends. Everybody’s worked very hard. It’s very complicated.”
Plea Hearing Cancelled
LaJoice, 37, was to appear last week in U.S. District Court in Detroit on a federal bank fraud charge filed June 7, but the Free Press reported the plea hearing was canceled so a resolution could be finalized.
LaJoice, a father of two young children, could get up to 20 years in prison on the state charges and 30 years on the federal charge, Manley told the Free Press.
Paul Walton, chief assistant for the Oakland County Prosecutor’s Office, was quoted by the Free Press as saying it was his understanding that the last discussions with LaJoice’s attorney was that LaJoice was going to plead as charged, but he has no idea what will happen until the matter is formally placed on the court record.
According to authorities, LaJoice’s embezzlement scheme allegedly involved—among other schemes--issuing cashier’s checks from various credit union accounts without authorization. The checks were deposited in bank accounts he owned at various financial institutions. The checks were made payable to the respective institutions and fictitious people and were typically deposited via ATMs.
He is also accused of conducting transfers via automated clearinghouse withdrawals from the credit union to his personal accounts held at other financial institutions, and of setting up automated clearinghouse withdrawals to debit funds from the credit union’s investment general ledger, which he was responsible for balancing. When the electronic transfers debited the credit union’s general ledger investment account, the funds were deposited into his personal accounts at other financial institutions, according to authorities.
After the funds were deposited, he would clear the credit union’s ledger to delete the corresponding transaction. LaJoice then would wire transfer the funds from his personal accounts to other accounts, including his business account at Comerica Bank, according to the charges against him.
What's Happening Now
As CUToday.info reported earlier, efforts are ongoing to sell properties LaJoice owns. All proceeds from the sales will go to NCUA, which liquated Clarkston Brandon Community Credit Union. MSU FCU absorbed the CU in a merger.
Manley told the Detroit Free Press, “We are doing everything we can to put Mr. LaJoice in a position to show how remorseful he is and obtain maximum restitution for the victims.”