SPRINGFIELD, Mass. – Defense lawyers for once-prominent community development credit union figure Carol Aranjo told the jury in closing arguments yesterday that while the books of D. Edward Wells FCU may have been in disarray, there was no willful intent to steal funds from the now-defunct CDCU.
Prosecutors claimed that Aranjo ran the one-time $7 million credit union with an iron hand and embezzled funds for the benefit of her family and cronies. Aranjo is accused of traveling, purchasing a Mexican time-share and a sauna, and paying off personal debts using credit union members' funds. "She was like a shark looking for prey," said Assistant U.S. Attorney Jorge Almonte of dozens of alleged transfers from unknowing members’ accounts into her and her families, in order to cover deficits.
The jury in the case began deliberations yesterday, after five weeks of testimony and 29 witnesses.
Aranjo, her husband Alphonso Smith and their son Douglas Smith were charged with embezzlement, conspiracy and tax evasion in the operations of the 44-year-old CDCU, which was liquidated by NCUA in 2003. The case took a tragic turn last November when Douglas Smith drowned in a boating accident while awaiting trial.
Aranjo, who once chaired the National Federation of CDCUs, rose to national prominence during the 1990's as a spokesperson for community development financial institutions, an initiative championed by the Clinton administration.
