ALEXANDRIA, Va.-NCUA last week barred Milton Callan, a former vice president at Lockheed Federal Credit Union, for embezzling $830,000 from the credit union through a phony expense scheme. Three other employees of the same credit union who were also involved in the scheme were also barred.
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 Lockheed Federal 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 that 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 also barred for their roles in the scandal: Varoujan Daglian; Lorraine Lopez and Victor Jackmon. Daglian was convicted of grand theft and ordered to pay $751 in restitution; Lopez was convicted of grand theft and ordered to pay $5,808 in restitution, and Jackmon was convicted of felony theft and ordered to pay $14,263.66.
Separately, NCUA also barred Rhonda Hitt, a former employee of Fort Worth Star-Telegram Employees FCU for stealing $4,300.
