LANSING, Mich. – The former president/CEO of Veterans Health Administration Credit Union has been sentenced to 30 months to 20 years in prison for stealing $1.9 million from a veterans’ credit union she ran.
The credit union has since been closed and merged into Public Service CU in Romulus, Mich.
Fuataina Afutiti, 50, had pleaded guilty to a count of receiving proceeds from a continuing criminal enterprise and a count of embezzlement from a credit union. As CUToday.info reported, Afutiti leased or bought several vehicles, including a 2013 Mercedes Benz and a $100,000 motor home, and also used money embezzled from the credit union to finance personal vacations.
Michigan Attorney General Bill Schuette said the offense was especially egregious because the credit union was used by veterans, including ones who were disabled and living on fixed incomes. “I am pleased to see this verdict,” he told The Detroit News. “This person not only took advantage of her position within the credit union but took advantage of military veterans.”
Afutiti, who will report to prison on Jan. 4, also agreed to pay restitution in the amount of $1.9 million. She was sentenced in Wayne County Circuit Court, the newspaper reported.
The misconduct was discovered in February 2016 during an exam by the State of Michigan’s Department of Insurance and Financial Services . The audit revealed significant irregularities and cash shortfalls at the credit union. Prosecutors said Afutiti was questioned at that time and could not provide an explanation of the irregularities.