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    United States Attorney's Office
    Central District of California

    Thom Mrozek
    Public Affairs Officer

    (213) 894-6947
    thom.mrozek@usdoj.gov



    Return to the 2010 Press Release Index
    Release No. 10-028

    February 8, 2010

    CASTAIC MAN WHO EMBEZZLED MORE THAN $800,000 FROM LOCKHEED FEDERAL CREDIT UNION SENTENCED TO 41 MONTHS

    A former vice president of Lockheed Federal Credit Union was sentenced today to 41 months in federal prison and ordered to pay full restitution for engaging in a scheme to embezzle from the credit union.

    Milton W. Callan, 60, of Castaic, was sentenced by United States District Judge Dale S. Fischer in Los Angeles. In addition to the prison term, Judge Fischer ordered Callan to pay $831,763.91 in restitution.

    When he pleaded guilty last year, Callan admitted that 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.   

    Callan's fraudulent conduct was discovered initially by the Lockheed Federal Credit Union, which immediately referred the matter to the Federal Bureau of Investigation. Based on that investigation, Callan pleaded guilty in September to one count of embezzlement by a credit union employee. 

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    Release No. 10-028
    Return to the 2010 Press Release Index