A member of Bay Winds FCU was charged with embezzling more than $675,000 from a title company where she worked and laundering the funds through her credit union account. Karla Lockman, 34, of Boyne City, allegedly purchased a $262,000 home with cash and two vehicles costing more than $67,000, in the scheme which bankrupted the Northern Preferred Title Co. Lockman cancelled checks made out to the company at closings, then deposited them in her credit union account, authorities said. Lockman declared bankruptcy last August.
The scheme apparently busted the title company, forcing it to lay off all 16 of its employees and losing its underwriter. The title company is suing the credit union and a local bank claiming the institutions knew or should have known or should have inquired whether Lockman had the authority to take the proceeds from the checks.
