Rosemount Couple Sentenced To Prison For Stealing Millions From Hmong American Federal Credit Union

Acting United States Attorney Gregory G. Brooker today announced the sentencing of NKAJLO VANGH, 61, and his wife TRUE YANG VANGH, 52, for orchestrating a years-long, multi-million dollar fraud scheme. NKAJLO VANGH was sentenced to 90 months in prison and TRUE VANGH was sentenced to 72 months in prison. Both defendants entered guilty pleas and were sentenced yesterday before Senior Judge Michael J. Davis in U.S. District Court in Minneapolis, Minn.

According to court documents, NKAJLO VANGH served as the President and Chairman of the Board of Directors for the Hmong American Federal Credit Union (“Hmong American FCU”) overseeing daily operations, authorizing checks, soliciting individuals to serve on the board of directors, and maintaining minutes for board meetings. TRUE VANGH was employed as the full-time manager of the Hmong American FCU and was responsible for hiring and managing employees, obtaining and maintaining credit union funds, assisting tellers with financial transactions, and ensuring proper reconciliation and documentation of credit union transactions.

According to the defendants’ guilty pleas and documents filed in court, the defendants diverted credit union funds to themselves and businesses they operated by fraudulently issuing loans from the Hmong American FCU and then transferring the money to accounts they controlled. As part of the scheme, the defendants submitted loan applications using fictitious names and falsified personal, employment and income information. In their respective capacities, the defendants approved the loans despite knowing that the information provided in the loan applications was false. After the loans were approved, the proceeds of the fraudulent loans were disbursed into accounts belonging to or controlled by the defendants. The defendants then used the proceeds to pay pre-existing, bogus loans that had also been disbursed by the Hmong American FCU to personal and business accounts they controlled. During the course of the scheme, the defendants approved and disbursed fraudulent loans totaling $2,075,000 from the Hmong American FCU.

This case is the result of an investigation conducted by the FBI.

Assistant U.S. Attorney Michelle E. Jones prosecuted the case.

Defendant Information:

TRUE YANG VANGH, 52

Rosemount, Minn.

Convicted:

• Bank Fraud, 1 count

Sentenced:

• 72 months in prison

• Four years of supervised release

• $1,781,106 joint restitution

NKAJLO VANGH, 61

Rosemount, Minn.

Convicted:

• Bank Fraud, 1 count

Sentenced:

• 90 months in prison

• Four years of supervised release

• $1,781,106 joint restitution

   

   

   

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  United States Attorney’s Office, District of Minnesota: (612) 664-5600