State Steps Up To Protect Credit Union Members After CFO's Alleged $20 Million Embezzlement

CLARKSTON (WWJ) - The state is stepping in to make sure people who do business with the Clarkston Brandon Community Credit Union don't lose any money after the bank's CFO was charged with embezzling more than $20 million.

The director of the Michigan Department of Insurance and Financial Services (DIFS) has appointed the National Credit Union Administration (NCUA) as conservator of the credit union to protect the public and those who have money in the bank.

"Members should be assured that all of their deposits are protected and they will have continued, uninterrupted access to their funds," Patrick McPharlin, DIFS director, said in a statement.

Credit Union executives say there has been no change in hours or services and members assets are secure. As the appointed conservator, NCUA will assume control of the credit union, which has about 9,400 members, in order to ensure its financial stability and safe and sound operation. DIFS and the NCUA will work together to address issues related to the credit union's operations and financial condition while maintaining member services.

The move comes just days after Michael LaJoice, the chief financial officer of the credit union, walked into the Oakland County Sheriff's Department and confessed to stealing more than $20 million over the past 12 years.

According to the credit union, serious accounting irregularities were discovered during a routine visit from the DIFS. After LaJoice was confronted about the errors, officials say he failed to show up for work the following day and was immediately terminated as CFO, a position that he held since June 2015. He then turned himself in to police.

Investigators are still trying to learn the full extent of the crime and how the scheme remained undetected.

LaJoice is currently being held on a $1 million bond ahead of a January 20 court date. He's facing 14 counts of embezzlement.