WHITE PLAINS, N.Y.-The former head of USAlliance FCU's brokerage CUSO recently was sentenced to serve three to nine years behind bars for embezzling more than $2.2 million in stocks from the operation, known as Affina Brokerage Services.
John Walsh admitted he illegally transferred shares of stock from the credit union, which owns the brokerage firm, into accounts he controlled and then sold the shares for cash. He also created phony stocks and used them as collateral for loans.
The 54-year-old executive pleaded guilty to first-degree grand larceny and agreed to go to begin his three- to nine-year prison sentence immediately.
Walsh's attorney said alcoholism and depression fueled his client's crimes. Walsh was ordered to pay $2.3 million in restitution to the insurance company that covered the firm's loss, but the lawyer said that it would be "impossible" for Walsh to pony up that amount.
"My client is indigent," the lawyer told the court yesterday. "He has no money. His house is in foreclosure."
