July 21, 2014
By Bob Coleman
Editor, Coleman Report
This one is a head scratcher. On the surface, the fraud doesn’t make any sense. Today’s alleged perp didn’t benefit monetarily, and threw away a 17-year tenure as the credit union president for a half million fraud – that benefited others.
The ex-president of Tazewell County School Employees Credit Union in Pekin, Illinois is facing ten felony counts of loan fraud.
From the indictment…..
For customers who were not otherwise able to obtain loan funds or who were having difficulty making payments, Juska created loans in the names of other individuals without their knowledge. Juska then used proceeds from those loans for the benefit of those seeking additional funds and to make loan payments.
Juska wrote and approved loans for members andother who were not eligible for reasons such as poor loan history, insufficient income, and lack of collateral.
Juska concealed delinquent loans from the Board of Directors and the loan committee by adjusting loan rates to lower the amount of the payments. To conceal the lowered rates, Juska did not document the new loan rate.
Juska also concealed delinquent loans from the Board of Directors and the loan committee by creating new loans for customers with delinquent loans, using proceeds from the new loans for customers with delinquent loans and using proceeds from the new loans to make payments on the delinquent loans.
Juska further concealed delinquent loans by writing loan advances on existing loans to allow members to use the loan advances to make the loan payments on those same loans.
Finally, Juska wrote loans which used the same collateral to secure multiple loans.