LANSING, Mich.–The former CEO of Valley State Credit Union here has been sentenced to up to 20 years in prison on 13 felony counts.
Stanley Hayes, 45, of Saginaw, Mich., was charged after he stole $710,000 from the credit union.
As CUToday.info reported earlier, prosecutors said Hayes used the funds to pay personal expenses that included insurance, travel and property taxes. He also used the money to hide personal financial problems, according to authorities.
Hayes led the credit union from 2005 until being fired in 2016. Prosecutors said Hayes used electronic means to steal the money, although approximately $200,000 in cash was also stolen. According to authorities, Hayes made payments on defaulted loans and loans held by dead members in order to fool auditors.
“As CEO of the credit union Hayes had the trust of his employees and members of the credit union and he took advantage of that for personal gain, breaking the law in the process,” said one prosecutor.
Hayes has also been ordered to pay $709,000 in restitution as well as $1,014 in state costs and fees.