COLUMBIA HEIGHTS, Minn. – The former president of First Community CU, who prosecutors said used the institution as his own "piggy bank," was sentenced Friday to 21 months in prison after pleading guilty to embezzling more than $250,000 from the institution.
Authorities believe Richard Lange, who had worked at the credit union, now called Financial One CU, for 27 years, may have stolen much more–as much as $1 million–but accepted the plea to the lesser amount.
During his tenure Lange built the credit union from $1 million in assets to $54 million. The credit union now has almost $65 million in assets.
Lange, 52, pleaded guilty last year to two of 55 felony charges of embezzlement, money laundering and false income tax returns. He used the stolen credit union funds to: pay premiums on a $1.5 million life insurance policy; pay off his and his wife's Visa bill; buy three homes; pay the property taxes on those homes; buy a $17,000 Chevy Suburban, $1,981 in Tiffany jewelry for his wife and a $5,355 riding lawnmower, and even pay the paper boy $106.64 for home newspaper delivery that was never authorized by the board.
Prosecutors said Lange regularly cashed checks made out to the credit union and either deposited them into his own or family members' accounts.
Lange, who was paid about $135,000, was dismissed by the board after a board-hired attorney and accountants discovered account discrepancies and interviewed employees who believed something was wrong.
Board members, who made $50 per month, found themselves besieged by Lange supporters in a divided community who thought they were out to get Lange. They turned the case over to the FBI after their own investigation found wrongdoing in 2005.
