ALEXANDRIA, Va. – NCUA said this afternoon it barred Milton Callan, a former vice president at Lockheed FCU, for embezzling $830,000 from the credit union through a phony expense scheme.
Callan, 61, was sentenced last year to 41 months in federal prison and ordered to pay full restitution for the embezzlement.
The credit union exec admitted he opened corporate credit accounts in the name of the credit union at several different stores. Using these accounts, Callan made personal purchases, which included electronic goods, gift cards, food, and furniture. Callan kept some items for his personal use and returned others in exchange for cash refunds. Each month, the stores sent monthly corporate credit card bills to the credit union. By virtue of his position, Callan was able to direct mail room employees to forward the invoices directly to him.
Callan then prepared purchase orders which falsely stated that he had used the corporate credit accounts to purchase items on behalf of the credit union. Because each purchase order sought payment under Callan’s pre-authorized spending limit, the credit union approved each purchase order in the absence of supporting documentation and without approval from Callan's supervisor.
Three other Lockheed FCU employees were barred for their roles in the scandal: Varoujan Daglian; Lorraine Lopez and Victor Jackmon.
NCUA also barred: Rhonda Hitt, a former employee of Fort Worth Star-Telegram Employees FCU for stealing $4,300.
