NEW YORK — A New York state judge has been convicted of obstructing a federal probe into Municipal Credit Union here, which is operating under NCUA conservatorship.
Following a two-week trial, State Supreme Court Justice Sylvia Ash, 64, of Brooklyn, was convicted of conspiracy, obstruction of justice and making a false statement to a federal agent. She was acquitted of another obstruction count.
The verdict was returned in Manhattan federal court after jurors heard evidence supporting charges that she took steps over multiple months to obstruct the investigation into financial misconduct at the Municipal Credit Union while she chaired the CU’s board.
“Obstruction of justice, particularly by a sitting state court judge, is a serious crime, and Ash now faces punishment for her obstruction scheme,” U.S. Attorney Damian Williams said in a released statement.
According to prosecutors, the obstruction occurred while Ash served on MCU’s board from May 2008 to August 2016, when she resigned. She had served as the board’s chair from May 2015 until her resignation.
Prosecutors had alleged Ash received tens of thousands of dollars in reimbursements and other benefits from the credit union from 2012 through 2016. The reimbursements included payments for airfare, hotels and entertainment for her and a guest to attend conferences domestically and abroad, along with annual birthday parties at a minor league baseball stadium and payment for phone, cable bills and electronic devices, authorities said.
Sentencing has been set for April 20.
As CUToday.info also reported here, the credit union’s former CEO, Kam Wong, has already pleaded guilty to embezzling more than $10 million. Wong was sentenced in June 2019 to five years in prison. The $3-billion credit union was placed into conservatorship in 2018 and continues to be managed by NCUA.
The $4.2-billion Municipal Credit Unio has nearly 600,000 members.