RICHMOND, Ind. — A former Indiana credit union CEO who used his position to secure fraudulent loans for personal use was sentenced Wednesday to federal prison, WTHR reported.
Daniel Johnson, 37, of Centerville, was sentenced to two years in federal prison, followed by two years of supervised release, and ordered to pay $285,855.66 in restitution after pleading guilty to two counts of bank fraud, WTHR reported.
Johnson previously served as CEO of Richmond City Employees Federal Credit Union, which later merged into Kemba Credit Union of West Chester, Ohio, in 2023. Court records show that in August and September 2021, Johnson submitted two secured loan applications totaling $300,000, falsely claiming the funds would be used to purchase recreational vehicles.
While credit union executives are permitted to apply for loans, WTHR noted that such requests must be reviewed and approved by the board of directors. Investigators said Johnson falsely told staff the board had approved the loans when it had not.
After receiving the funds, Johnson used part of the money to pay off roughly $65,698 in existing secured loans to release the credit union’s collateral, according to court documents referenced. He then used the remaining funds for personal expenses, including student loans, and to purchase a home.
In the second loan application, filed in September 2021, Johnson also forged his then-wife’s signature to make it appear she had requested the loan, WTHR reported.
The scheme ultimately resulted in nearly $300,000 in what amounted to unsecured loans, causing financial losses of $285,855.66 to the credit union.
“As the Chief Executive Officer, Johnson was tasked with protecting money earned by hardworking public servants for the City of Richmond,” U.S. Attorney Tom Wheeler said. “Instead, Johnson chose to abuse this trust and line his own pockets through dishonesty,” he added.