BIRMINGHAM, Ala. – The former president of Alabama Central CU on Thursday was sentenced to 17 months behind bars for stealing $140,000 from the credit union through a scheme using fictitious companies whose bills were paid through the credit union.
Michael Young, 42, pleaded guilty to the bank fraud charge in June. He had entered a plea agreement with the government in April.
Between about April 2009 and June 2010, Young submitted fraudulent bills and invoices on behalf of two fictitious companies he had created, according to federal prosecutors.
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. The money paid by the credit union to the accounts of the fictitious companies was controlled and ultimately spent by Young.
