COLUMBIA, Ill.–Theodore J. Longust, 51, a former employee of Scott Credit Union, has received a sentence of more than 10 years in crimes committed while at the credit union.
The U.S. Attorney’s office for the Southern District of Illinois said Longust was convicted on nine counts that included fraud, money laundering, misapplication of funds and making a false record to Scott Credit Union. Longust worked in Scott Credit Union’s commercial loan department from Nov. 7, 2005 to Dec. 8, 2014.
The U.S. Attorney said Longust “executed a scheme to defraud” by embezzling credit union funds, creating fraudulent loans, paying loans through the misapplication of funds from other loans, increasing credit limits on unapproved loans, issuing undocumented business loans and issuing undocumented letters of credit.
The U.S. Attorney’s Office added that Longust knowingly submitted a false report to his employer for the third quarter of 2014 that had “misstated loan balances and omitted loan amounts and under-reported loans” of more than $12 million.
As a result, Scott Credit Union overall lost $25.8 million, according to prosecutors, which included criminal and civil losses. The U.S. Attorney said direct criminal losses were $13,719,947.21.
The court sentenced Longust to more than 10 years in prison, and also ordered him to pay $5,012,362.52 in restitution to Scott Credit Union and $9,114,560.69 to CUMIS Mutual.