SCRANTON, Penn. - The former CEO of Valor Federal Credit Union has pleaded guilty to bank fraud and attempted bank fraud and faces up to 60 years in prison. Sean Jelen was initially fired following a drunk driving charge in a credit union-owned Mercedes Benz that he initially declined to return to VFCU.
Jelen appeared before United States Magistrate Judge Karoline Mehalchick in Scranton and entered the plea.
According to United States Attorney Peter Smith, Jelen committed and attempted to commit a series of fraudulent activities from July 2014 to August 2015. For much of that time Jalen was the CEO of Valor FCU. The charges include forged and altered documents, including creating fictitious members of the board.
In court Jelen admitted to executing the scheme to defraud Valor of approximately $718,000, funds he said were used to pay for his personal credit card, his graduate tuition, his spouse’s birthday party, and a golf tournament sponsorship.
In late 2015 Jelen was fired from his role as CEO after he had allegedly been driving a credit union-owned Mercedes Benz S550—valued at more than $100,000—while intoxicated. The car had been provided to Jelen from the CU as a perk.
Following the dismissal, Jelen failed to return the car for several weeks, which led to the CU report the car to police as stolen.
Other Charges
Jelen was also accused of rigging elections held for the Valor Credit Union board of directors, whereby he elected and subsequently impersonated fictitious members of the board of directors and its supervising committee, the Attorney’s office stated.
In addition, Jelen is charged with attempting to obtain an additional $1,146,000 through fraudulent means, and with creating a forged severance contract that would be triggered by his termination.
The $231-million Valor lost $3.5 million last year and $35,811 in Q1 2016.
Jalen remains out of prison on release and is scheduled to be sentenced by United States District Court Judge Richard P. Conaboy. He faces up to 60 years in prison.