Fraud Friday — President & CEO of credit union charged with 33 counts of Fraud & Theft

April 27, 2018

By Bob Coleman
Editor, Fraud Friday

Fraud Friday — President & CEO of credit union charged with 33 counts of Fraud & Theft

The ex-president and CEO of First Legacy Community Credit Union has been indicted taking more $375,000 from the Charlotte-based institution.

Saundra Scales, 61, is accused of making false entries in the books and records, misapplying and stealing funds, and fraudulently using the identity of at least one third party victim to obtain a loan from FLCCU.

Specifically, Saundra approved the payment of compensation to herself and others without authorization — compensation for unused sick leave, compensation for the sale of GAP insurance in connection with automobile loans, and other uncategorized compensation — so says the Feds.

The indictment also alleges that much of this compensation was not reported as taxable income, which caused underreporting and underpayment of federal and state income and/or employment taxes.

To conceal her wrongdoing, Saundra falsified documents and made false entries in the books and records of FLCCU. These false entries caused FLCCU’s reported financial results to be inaccurate.

Scales indictments are fallout from the credit union receiving a $1 million TARP investment during the Great Recession.

Kerri Agee Editor Note

Editor Note: Several people who I respect questioned my reporting of Kerri Agee leaving banc-serv under the Fraud Friday Banner. I carefully reread the post. There is nothing to suggest Kerri is accused of fraud from the FBI raid. However, I agree it was a cheap shot to publish under Fraud Friday. I am removing it from the title. On a personal note, Kerri, I always enjoyed working with you and wish you nothing but the best for you with your family, kids and their activities
— Bob Coleman