Former President of Credit Union Charged in Federal Court with Bank Fraud

BIRMINGHAM—Federal prosecutors today charged a former credit union president with bank fraud in connection with fictitious companies whose bills were paid through the Birmingham-based credit union, announced U.S. Attorney Joyce White Vance and FBI Special Agent in Charge Patrick Maley.

The U.S. Attorney charged MICHAEL JOHN YOUNG, former president of Alabama Central Credit Union, in a one-count information filed today in U.S. District Court. Prosecutors also filed a plea agreement in which Young, 42, of Kimberly, acknowledges the fraud and agrees to plead guilty to the bank fraud charge. As part of the plea agreement, Young agrees to pay restitution andforfeiture of$140,000.

According to the court documents, the fraud was conducted as follows:

Between about April 2009 and June 2010, Young, as president of Alabama Central Credit Union, submitted fraudulent bills and invoices on behalf of two fictitious companies he had created. Neither business had provided any services or goods to the credit union. Young would authorize payment by the credit union of those bills and invoices he submitted in the name of the fictitious companies. The money paid by the credit union to the accounts of the fictitious companies was controlled and ultimately spent by Young.

The maximum sentence for the bank fraud charge is 30 years in prison and a $1 million fine.

The FBI investigated the case. Assistant U.S. Attorney Patrick Carney is prosecuting it.