EDWARDSVILLE, Ill.–The former business relationship manager at Scott Credit Union has pleaded guilty to a nine-count indictment related to the theft of $12 million.
The U.S. District Attorney’s Office for Southern District of Illinois said that Theodore J. Longust, 50, worked in the commercial loan department from Nov. 7, 2006 through Dec. 8, 2014 as a business relationship manager. Prosecutors said Longust executed a scheme to defraud through the embezzlement of credit union funds, the creation of fraudulent loans, the payment of loans through the misapplication of funds from other loans, the increase of credit limits on loans that did not have the requisite board approval, the issuance of business loans without the required documentation or security and the issuance of letters of credit without the required documentation and security. The indictment also alleges that he knowingly submitted a false report to Scott Credit Union for the 3rd quarter of 2014 that misstated loan balances and omitted loan amounts and underreported loans of over $12,000,000.
According to prosecutors, Longust faces a prison sentence of up to 240 years, a fine of up to $4,500,000, and up to five years supervised release, and mandatory restitution when he faces sentencing on Sept. 6, 2016.
"While we are not in the business of giving the public financial or legal advice, the public should know that our investigation revealed that the safety and soundness of Scott Credit Union has not been adversely affected by the criminal conduct." noted Acting United States Attorney James L. Porter in a statement. "We thank the employees of Scott Credit Union who fully cooperated in our federal investigation."
The prosecution is the result of an investigation by the Federal Bureau of Investigation, the Internal Revenue Service/Criminal Investigations with the assistance of Scott Credit Union.
The U.S. District Attorney’s Office for Southern District of Illinois said that Longust agreed to guilty pleas on Count 1, financial institution fraud; counts 2-5, misapplication of funds; and counts 6-8.