NY credit union chief accused of embezzling money from fund, spending $3.55M on lottery tickets

NY credit union chief accused of embezzling money from fund, spending $three.55M on lottery tickets

The head of the town’s oldest credit union embezzled money from the fund for years — splurging on thousands and thousands value of lottery tickets — through filing bogus invoices for dental paintings and different bills, federal prosecutors mentioned Tuesday.

Kam Wong, 62, from Valley Stream, L.I., who heads the Municipal Credit Union, allegedly used the ill-gotten positive factors to buy some $three.55 million in New York State lottery tickets, in line with Manhattan U.S. Attorney Geoffrey Berman.

He additionally “obtained numerous other payments from the Credit Union under suspicious or questionable circumstances” from no less than 2013 thru January 2018, Berman mentioned in a press liberate saying the arrest.

The embezzlement incorporated lining his wallet with thousands and thousands in money bills as a substitute of a long-term incapacity coverage, prosecutors mentioned. He additionally allegedly expensed thousands and thousands for taxes to hide the ones bills.

On Tuesday, Wong used to be charged in Manhattan federal court docket with fraud, embezzlement, and annoyed identification robbery.

According to officers, Wong — who ascended to an MCU management place after a monetary scandal within the mid-1980s — were given reimbursed for maintenance made on a luxurious car the credit union leased to him, prosecutors mentioned. The restore paintings used to be in fact coated through insurance coverage.

Wong additionally made money withdrawals from a industry credit card for supposedly “testing” the credit union’s ATMs, the legal criticism says. And he allegedly filed “substantial” instructional, housing, and residing bills for 2 of his pals’ kin who had been employed as credit union interns, government mentioned.

Wong took “tens of thousands of dollars in annual cash advances” from the fund, court docket information display. He has been not able to provide an explanation for the place that money went, prosecutors mentioned.

According to the criticism, Wong deposited some of the money from the quite a lot of schemes right into a credit union account that he tapped greater than 2,500 occasions between July 2013 and January 2018.

All instructed, he withdrew $1.nine million from that account.

In February, he used to be positioned on depart through the fund’s board of administrators primarily based on a different committee overseeing an inside investigation primarily based on the legal probe.

His legal professional maintained Wong did not anything incorrect.

“Kam Wong has added tremendous value to the credit union and under his stewardship, there have been record profits,” mentioned Jeffrey Lichtman. “Any actions he committed were done transparently and openly, with full consent of the credit union’s board.”

Before his arrest, Wong used to be hailed as an American good fortune tale.

He got here to New York when he used to be 19 and lived together with his folks and 5 siblings in a small condominium with one rest room.

In 2006, he used to be named the pinnacle of the MCU after he spent years transferring up the ranks. The fund has greater than 425,00zero contributors who’re public workers are associated with municipal staffers.

News story photo(Click to show full-size in gallery)

Thanks to Original Bey for the end.

Updated: May 9, 2018 — 6:07 am

Leave a Reply

Your email address will not be published. Required fields are marked *