SAN DIEGO – CUNA Mutual Group has asked a federal bankruptcy court to reject a plea from a former credit union executive convicted of stealing $287,000 from San Diego County CU to erase her restitution to the insurer’s CUMIS Insurance Society through the Chapter 7 procedure.
Barbara Kilts was fired from her job as loan officer in 1992 and subsequently pleaded guilty to charges of bank fraud for transferring money from the credit union’s general ledger to her personal accounts.
CUMIS eventually paid a bond claim to cover the credit union’s losses. As part of her plea agreement, Kilts agreed to pay restitution to the credit union insurer at between $75 and $150 a month. At July 15, the balance on her restitution was $126,650.
But on Aug. 31, Kilts filed a Chapter 7 bankruptcy petition which would erase her debts. CUMIS, which is her biggest debtor, has filed a petition with the bankruptcy court to prevent the move.
Officials at CUNA Mutual declined to comment.
