RICHMOND, Ind.—The former CEO of Richmond City Employees Federal Credit Union has been charged with two counts of bank fraud, KICKS 96 reported.
According to court documents, Daniel Johnson allegedly falsified loan applications to secure hundreds of thousands of dollars from the credit union for his own personal use, KICKS 96 said.
As CUToday.info reported, in 2023 the $6.97-million Richmond City Employees FCU merged into $1.6-billion Kemba CU, based in West Chester, Ohio.
NCUA placed Richmond City Employees Federal Credit Union into conservatorship on Dec. 12, 2022, and appointed itself as conservator.
At the time of conservatorship, the then $8.039-million Richmond City Employees FCU had approximately 836 members and had reported a net loss that is one-eighth its asset size--$495,477—as of Sept. 30. It had a paltry 2.31% capital as of the same date.
The agency reported it conserved RCEFCU due to “unsafe and unsound practices.”