HOUSTON – The former manager of the International Longshoremen’s Association No. 24 CU pleaded guilty making more than $2.2 million worth of fraudulent loans to herself which bankrupted the $4.8 million credit union two years ago.
Melinda Andrews, 53, pleaded guilty to creating a large volume of phony loans in the names of members of the credit union for the benefit of herself and her family members. The membership of the credit union was comprised primarily of employees and family members belonging to the International Longshoremen’s Association Union Local No. 24.
From Jan. 1, 2000, until Feb. 28, 2006, Andrews made approximately 1,600 payments worth $2.2 million to herself and members of her family. The $2 million plus sum represents the actual amount of money taken from the credit union. The total amount of fraudulent loans was valued at approximately $7 million.
Andrews used the money members deposited in the credit union to fund the loans she created. Andrews concealed the loans she created from the credit union board of directors by developing fictitious loan statements indicating that members had actually taken out the loans. She then took the money from the loans she created and transferred the funds into share accounts and loan accounts of her family members.
