Member Charged With Bilking TitleInsurance Co.
CHARLEVOIX, Mich. - (06/27/05) -- A member of Bay Winds FCU wascharged last week with embezzling more than $675,000 from a titlecompany where she worked and laundering the funds through hercredit union account. Karla Lockman, 34, of Boyne City, allegedlypurchased a $262,000 home with cash and two vehicles costing morethan $67,000, in the scheme which bankrupted the Northern PreferredTitle Co. Lockman cancelled checks made out to the company atclosings, then deposited them in her credit union account,authorities said. Lockman declared bankruptcy last August. Thescheme apparently busted the title company, forcing it to lay offall 16 of its employees and losing its underwriter. The titlecompany is suing the credit union and a local bank claiming theinstitutions knew or should have known or should have inquiredwhether Lockman had the authority to take the proceeds from thechecks.