NEW YORK–Kam Wong, CEO of the $2.8-billion Municipal Credit Union here, has been charged with embezzling more than $3 million from the credit union by the U.S. Attorney’s Office for the Southern District of New York. According to prosecutors, Wong, 62, allegedly used the money to buy New York State lottery tickets.
The U.S. Attorney has charged Wong with embezzling from the credit union by submitting false invoices for dental work and other expenses. Wong allegedly also "obtained numerous other payments from the credit union under suspicious or questionable circumstances" from at least 2013 through January 2018, according to a released statement from U.S. Attorney Geoffrey Berman.
Among those other circumstances, according to the statement, was millions of dollars in cash payments that were supposed to go to a long-term disability policy and bogus expenses for taxes to cover those payments.
In all, the U.S. Attorney said Wong purchased some $3.55 million worth of lottery tickets.
Wong has been charged in Manhattan federal court with fraud, embezzlement, and aggravated identity theft.
Other Allegations
According to court documents, Wong also allegedly also:
- Was reimbursed for repairs made on a luxury vehicle the credit union leased to him even though the work was covered by insurance
- Made cash withdrawals from a business credit card for supposedly "testing" the credit union's ATMs
- Filed "substantial" educational, housing, and living expenses for two of his friends' relatives who were hired as credit union interns
- Took "tens of thousands of dollars in annual cash advances" and has been unable to explain where that money went,
- Accessed a credit union account that he tapped more than 2,500 times between July 2013 and January 2018 from which $1.9 million was withdrawn.
In February, he was placed on leave by the credit union’s board of directors based on a special committee overseeing an internal investigation based on the criminal probe, the New York Post reported.
"Kam Wong has added tremendous value to the credit union and under his stewardship, there have been record profits," said Wong’s attorney, Jeffrey Lichtman, in a statement to the Post. "Any actions he committed were done transparently and openly, with full consent of the credit union's board."
Wong, who joined the 425,000-member credit union in the 1980s, was named CEO in 2006.
MCU's Statement
In a statement to members on its website, MCU’s acting president/CEO, Norman Kohn, acknowledged the charges by the U.S. Attorney and said, “As acting president and chief executive officer, I want to assure you that the board and the management team continues to be committed to the important work we do for you day in and day out. MCU is as strong as it has ever been and we will continue to provide you, our valued members, with the committed and outstanding service you expect, and deserve, from us.”
The statement went on to say the charges are “deeply upsetting. MCU was aware of the investigation and has been cooperating with the U.S. Attorney’s office. Mr. Wong has been on administrative leave since February 22, 2018. The credit union has alerted all relevant regulatory agencies and has been conducting its own internal investigation led by outside counsel. The Credit Union is not under investigation. We want to assure our members that MCU remains financially strong and committed to their needs.”