BIRMINGHAM, Ala. – The former president of Alabama Central CU was charged by a federal grand jury yesterday with creating two fictitious companies through which he funneled $140,000 in phony expense payments from the credit union to himself.
Michael Young, 42, who was fired from the $130 million credit union a year ago, has agreed to plead guilty to a charge of bank fraud, according to a plea agreement filed with the federal court here.
Young created two fictitious companies -- Clarity Consulting Group LLC, and Consumer Retention Services LLC -- that he was using between April 2009 and June 2010 to bill the credit union for services that were never provided. He opened a checking account at Regions Bank in the name of the two phony companies where he deposited a total of 12 checks from the credit union totaling $140,000. Records from the bank account show that it was controlled and spent by Young.
Under the terms of a plea deal, Young has agreed to pay $140,000 in restitution to the credit union. Sentencing has not been scheduled yet.
