MADISON, Wis. – Authorities say the former CEO of Rapids Municipal CU committed suicide last November, the day he was scheduled to plead guilty to stealing almost $650,000 from the defunct credit union.
David Henke, the 51-year-old former manager of Rapids Municipal, was found dead inside his car, hours after he missed a court hearing where he was scheduled to plead guilty to embezzlement charges. When Henke failed to appear for the plea hearing the judge issued a warrant for his arrest. Officers went to Henke’s home to serve the warrant and found Henke dead inside the vehicle.
The scheme was uncovered only after the $8 million credit union, which served employees of the city of Wisconsin Rapids, Riverview Hospital, Family Heritage Nursing Home and the Wisconsin Rapids School District, was merged into Bull’s Eye CU, a $120 million credit union in Wisconsin Rapids, in December 2008. According to Bull’s Eye the fraud cost it $650,000 and another $170,000 in legal fees.
Bull’s Eye this week agreed to settle civil claims against Henke’s estate, according to court records in the case. The agreement with Henke’s ex-wife awards the credit union almost $85,000 from a brokerage account in Henke’s name.
Bull's Eye has already received $497,246 from its insurer, according to the records.
Henke was charged with depositing credit union funds into members’ dormant accounts then draining the funds from those accounts, and also converting CDs held by deceased members for his own use. He told authorities he embezzled the money by writing some credit union checks to his accounts at Wood Trust Bank and other banks, and also took credit union funds and invested them.
