PONTIAC, Mich.—Michael A. LaJoice, the former CFO at Clarkston Brandon Community CU, was arrested as part of an embezzlement LaJoice allegedly said has involved more than $20 million.
The Detroit News quoted police as saying LaJoice walked into the Oakland County Sheriff’s Office and admitting to having been stealing funds since 2003.
“We weren’t even aware of this until he came forward,” Undersheriff Michael McCabe was quoted as saying.
LaJoice, 36, who reportedly is married and has young children, has been arrested and search warrants have been executed by the Sheriff’s Office at several locations. His financial accounts have also been frozen, and a safe, computers and records were taken from a home in Livingston County. The Detroit News said he was well known for being generous with charities, including having once spent $4,000 to buy a pie at a church fundraiser.
LaJoice was arraigned on 14 charges that include unlawful withdrawal and conversion for his own use of $1.9 million in credit union funds, including placing them in his personal accounts between Oct. 22 and Dec. 16. Court documents indicate that withdrawals of $100,000, several on the same day, were made. LaJoice has entered a not guilty plea in Clarkston District Court.
The police told the Detroit News they do not know what led the suspect to turn himself in, but indicated a scheme involving bogus transactions and investments designed to mask the crime may have been uncovered during a recent audit.
The Detroit News quoted Donna Bullard, president and CEO of Clarkston Brandon Community CU, as saying, “We are currently conducting an investigation into an possible embezzlement of funds from the credit union by a former employee. While this investigation is proceeding, we want to assure our members that it is business as usual at the credit union.”
CBCCU has 9,300 members and assets of more than $60 million.
According to investigators, the embezzled funds were used to support a lifestyle “that exceeded the man’s $65,000 annual salary, including a $1.3 million, 5,800-square foot home. The suspect also started and heavily promoted a private business, one of several he told others he planned to build over the next decade.”
LaJoice was freed on a $1-million bond with conditions of GPS tether and home confinement. A probable cause hearing has been set for Jan. 20. The offenses are felonies that are punishable by up to 20 years in prison.