HOUSTON – CUNA Mutual Group is suing a former credit union CEO who agreed to repay it $159,000 she stole from her credit union.
As part of a plea deal with prosecutors, Renice Newton agreed to repay $155,000 she confessed to embezzling from 3-C CU, in Coffeyville, Kan., and another $4,000 in interest to the credit union’s surety bond holder, according to a lawsuit filed last week by CUNA Mutual. She paid $61,000 in payments at her sentencing and agreed to pay the remaining $98,850 to CUNA Mutual in $200 monthly installments.
But Newton filed for bankruptcy without telling CUNA Mutual and is trying to walk away from $98,850 still left on the restitution order, the suit alleges. The last payment was a check for $800 in June 2005.
CUNA Mutual, which provides surety bonds for more than 90% of credit unions, routinely enters into restitution orders to recoup losses paid on bond claims.
