More than half a million dollars written off in credit union fraud
LOUISVILLE, KY (WAVE) - Fraud, deception and a federal probe -- all words surrounding one defunct credit union with dozens of police officers who fell victim.
The fraud allegations surround the former vice president of the Louisville Metro Police Officers’ Credit Union, Josephine Crowe, who has repeatedly refused to comment. She is now under an FBI investigation.
According to attorneys for the victims, the scheme included fake loans and missed payments, sending their clients’ credit scores down the drain.
“Where did the money go and what can we do to fix it?” Attorney Allan Cobb told WAVE 3 Troubleshooter Natalia Martinez, who first broke the story surrounding the Louisville Metro Police Officers Credit Union.
Cobb and Attorney Andrea Hunt worked for a year to get their clients' money back.
"It's been hundreds of hours of effort on our part," Hunt said.
The attorneys said the National Credit Union Administration has agreed to more than $607,000 worth of write-offs.
"And that's only for 17 members," Cobb said.
The credit union once had 3,500 members.
“These are hard-working, ordinary people, dedicated to public service and to have this happen to them it really is troubling,” Hunt said.
The attorneys said the credit union’s board of directors and the Kentucky Department of Financial Institutions are also partially to blame.
"Where was the oversight, where was the supervision, where are the audits?" Cobb asked.
WAVE 3 News hasn't seen any of the audits either. In fact, even our Troubleshooter's requests for copies of the auditor's procedures were denied.
The attorneys fear the amount of money discovered missing will continue to rise.
"Now we are seeking to punish and recover money from the rule breakers," Cobb said.
They are urging everyone who had an account with the Louisville Metro Police Officers’ Credit Union in the last 10 years to check their credit reports for anything they don’t recognize.
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