Fraud Sunk Tiny Virginia CU

Published November 26, 2007, 12:56 a.m. EST

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Updated August 27, 2020, 1:31 a.m. EDT

1 Min Read

NORFOLK, Va. – A former executive at Portsmouth Post Office CU was charged with embezzling more than $170,000, forcing the credit union into a merger with the much larger Northern Star CU in 2003.

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Minerva Marrero-Smith, former executive vice president of the $1.9 million credit union, allegedly stole the funds through a variety of phony loans, which she eventually defaulted on. Marrero-Smith has since filed for personal bankruptcy with debts exceeding $400,000.

Federal prosecutors are seeking $212,000 from Marrero-Smith to repay the credit union.

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