Stolen Federal Grants Laundered ThroughCU

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EAST ST. LOUIS, Ill. - (11/08/05) -- A former manager in a non-profithousing agency that awarded federal grants to area residentspleaded guilty last week to diverting almost $160,0000 to herprivate credit union account. Letitia Slack, 40, worked as managerof the Community Development Block Grant Corp., which administeredmore than $3 million in federal Housing and Urban Developmentgrants to pay for youth programs, the demolition of derelictbuildings, and home repairs. From Sept. 2002 to March 2005 Slackhad checks sent from a fictitious company she invented to heraccount at Scott CU, in Cahokia. Slack convinced the credit unionto deposit the checks with the help of false authorizationpurportedly signed by the agency's director.

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