NEW HAVEN, Conn.–The former CEO of a Connecticut credit union has pleaded guilty to diverting several-hundred-thousand dollars of his CU’s money to a restaurant where he also worked as a bookkeeper.
According to federal prosecutors, James Farrell, 55, waived his right to be indicted and pleaded guilty in U.S. District Court in Bridgeport to bank fraud.
Prosecutors stated that while CEO of the $20.1-million New Haven County Credit Union, he also provided financial and bookkeeping services to The Rib House in East Haven, Conn., and over a period of several years, when The Rib House was experiencing financial difficulties, Farrell fraudulently transferred more than $600,000 from the credit union to the restaurant. Of that, he replaced approximately $370,000.
Farrell is scheduled to be sentenced in November. He has already made restitution.
The credit union has approximately 1,100 members.