FBI Investigating Scott Credit Union for Fraud
Scott Credit Union, a $1 billion credit union in Edwardsville, IL, probably thought things couldn’t get worse when it was sued by two members for millions of dollars claiming fraud and negligence on the part of the credit union. However, the FBI has announced that it is now investigating the credit union, as well. The lawsuit, which names the CEO, all of the directors, the chief executives and vice presidents as defendants, alleges that the credit union opened lines of credit in the defendants’ names without authorization or signatures, made unauthorized withdrawals of funds from one of the member’s checking account and used the members’ names and credit to extend commercial lines of credit to multiple fictitious or random limited liability companies. [9/17/15]
