Credit unions offer valuable services to their members. The ability to bank with a company affiliated with one’s employer can offer flexibility and inspire confidence that a large bank may not be able to duplicate. Credit unions in Kentucky and around the country have enjoyed popularity for this reason, but they are not immune from being charged with fraud.
A recent case involving the Louisville Metro Police Officers’ Credit Union is a case in point. The financial institution is being accused of fraud. The accusation implicates the credit union and a former vice president. According to the charges, fake loans were set up that then showed a history of missed payments and causing the account holder’s credit rating to go down. Though the loans were allegedly fake, the accounts the loans were reportedly attached to were real.
Credit unions are governed by the National Credit Union Administration. They have agreed to writing off over $600,000 in losses, but the charges imply that the losses could be significantly higher. There is some concern that insufficient audits and inadequate supervision from the Credit Union Administration may have contributed to the charges being brought.
No one is immune from prosecution if accused of fraud in Kentucky. When charged, a person is still presumed innocent until and unless proven guilty in a court of law. A person facing charges has the right to a defense and a trial by jury. The burden of proving guilt falls to the prosecution and must be supported by the evidence presented.