Lakewood Man Charged with Embezzling $1.8 Million from Credit Union
|U.S. Attorney’s Office January 06, 2014|
A Lakewood man was charged with embezzling more than $1.8 million from a Euclid credit union and using the money to pay approximately 15 personal credit card accounts, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio, and Stephen D. Anthony, Special Agent in Charge of the FBI’s Cleveland Office.
A two-count criminal information was filed charging William J. Memmer, 63, with one count of embezzlement and one count of making false entries in credit union records and reports.
“When those who hold trusted positions in financial institutions and those they work with betray the trust of the depositors, as is alleged in this matter, federal law enforcement will take all appropriate action to hold them accountable,” Dettelbach said.
“Memmer took advantage of his high-level position of trust by falsifying records and funneling money that was not his to himself,” Anthony said. “The FBI will continue efforts to see that fraudsters like Memmer are brought to justice.”
Memmer was employed as assistant manager/treasurer of the GIC Federal Credit Union (GIC), which maintained an office at 26255 Euclid Avenue in Euclid, Ohio.
From as early as 2006, Memmer maintained approximately 15 credit card accounts. He took blank GIC checks and drafted them payable to the credit card companies in payment of his personal obligation and then concealed the taking of the checks and embezzlement of the GIC funds. These actions caused a loss to the credit union of at least $1,843,007, according to the information.
As early as 2003, Memmer falsified quarterly financial reports to hide operating losses. He is also alleged to have falsified confirmations of GIC assets by as much as $5.7 million, according to the information.
Upon discovery of the fraud, the National Credit Union Administration closed GIC and began the liquidation process in December 2012. The liquidation is ongoing.
An information is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
If convicted, the defendant’s sentence will be determined by the court after review of factors unique to this case, including the defendant’s prior criminal record, if any; the defendant’s role in the offense; and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum and, in most cases, it will be less than the maximum.
The case is being prosecuted by Assistant U.S. Attorney James V. Moroney, following investigation by agents of the Federal Bureau of Investigation’s Cleveland Office.