Ex-CEO Of Alabama Central CU Indicted For Phony Expense Scam

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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.

 

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