Former Scott Credit Union Loan Officer Pleads Guilty To Frauds
Theodore J. Longust, 50, formerly from Columbia, Illinois, entered pleas of guilty today to a nine-count Indictment charging, Count 1, Financial Institution Fraud; Counts 2-5, Misapplication of Funds; Counts 6-8, Money Laundering; and Count 9, Making a False Record to Scott Credit Union With The Intent to Deceive, the Acting United States Attorney for the Southern District of Illinois, James L. Porter, announced. Longust was an employee of Scott Credit Union in the commercial loan department from November 7, 2005, continuing through December 8, 2014, and held the title of Business Relationship Manager. Longust executed a scheme to defraud through the embezzlement of credit union funds, the creation of fraudulent loans, the payment of loans through the misapplication of funds from other loans, the increase of credit limits on loans that did not have the requisite board approval, the issuance of business loans without the required documentation or security and the issuance of letters of credit without the required documentation and security. The indictment also alleges that he knowingly submitted a false report to Scott Credit Union for the 3rd quarter of 2014 that misstated loan balances and omitted loan amounts and underreported loans of over $12,000,000. Longust faces a prison sentence of up to 240 years, a fine of up to $4,500,000, and up to 5 years supervised release, and mandatory restitution when he faces sentencing before District Judge Yandle on September 6, 2016.
"While we are not in the business of giving the public financial or legal advice, the public should know that our investigation revealed that the safety and soundness of Scott Credit Union has not been adversely affected by the criminal conduct." noted Acting United States Attorney Porter. "We thank the Employees of Scott Credit Union who fully cooperated in our federal investigation."
The prosecution is the result of an investigation by the Federal Bureau of Investigation, the Internal Revenue Service/Criminal Investigations with the assistance of Scott Credit Union. The case is being prosecuted by Assistant United States Attorney Norman R. Smith.