stickyimage

Fraud Friday– New Haven County Credit Union CEO Sentenced for Bank Fraud

November 29, 2019

By Caity Witucki
Contributing Editor, Fraud Friday

Fraud Friday– New Haven County Credit Union CEO Sentenced for Bank Fraud

Former CEO of New Haven County Credit Union, James Farrell, was recently charged with $602,909 dollars worth of bank fraud. As a result of the fraud scheme, Farrell is facing one day in prison, 50 hours of community service, and two years on supervised release.

According to allegations contained in the Indictment, Farrell served as the credit union’s CEO from 1992 to 2015, and he remained with the company to assist his replacement until 2016. Farrell also worked providing financial and bookkeeping services to the Rib House, a restaurant in East Haven, between 2010 and 2016. The restaurant had a business account with the credit union, and Farrell routinely deposited cash sales and paid invoices in his role with the restaurant.

In August, Farrell pleaded guilty to one count of bank fraud, admitting to defrauding the credit union by transferring money from its general ledger account to the restaurant’s account. Farrell allegedly did so in order to help the restaurant meet its financial obligations, such as paying for operating expenses, food, liquor and taxes.

According to federal prosecutors, Farrell transferred approximately $602,909 over a five-year span. Farrell eventually replenished $370,278 to the credit union, but there was still a shortfall of $232,631. Since Farrell’s indictment, he has paid full restitution to the credit union.

“The defendant’s crime constitutes a serious offense,” Assistant U.S. Attorney Ray Miller wrote, in a pre-sentencing memorandum. “At its core, it is a breach of trust. This scheme was not a crime of impulse or a momentary lapse in judgment. The fraudulent transfers occurred over a period of five years.”

Sources:
Department of Justice
Hartford Business Journal
East Haven Patch

1 week ago by in . You can follow any responses to this entry through the | RSS feed. You can leave a response, or trackback from your own site.