Ex-Credit Union President Charged With Bank Fraud

A former credit union president has been charged with bank fraud by federal prosecutors in connection with fictitious companies whose bills were paid through the Birmingham-based credit union. 

The U.S. Attorney charged Michael John Young, former president of Alabama Central Credit Union, in a one count information in U.S. District Court. Prosecutors also filed a plea agreement in which Young acknowledged the fraud and agreed to plead guilty to the bank fraud charge. As part of the plea agreement, Young agreed to pay restitution and forfeiture of$140,000.
 
According to the court documents, the fraud was conducted as follows:
 
Between about April 2009 and June 2010, Young, as president of Alabama Central Credit Union, submitted fraudulent bills and invoices on behalf of two fictitious companies he had created. Neither business had provided any services or goods to the credit union. Young would authorize payment by the credit union of those bills and invoices he submitted in the name of the fictitious companies. The money paid by the credit union to the accounts of the fictitious companies was controlled and ultimately spent by Young.
 
The maximum sentence for the bank fraud charge is 30 years in prison and a $1 million fine.