PONTIAC, Mich.–Additional details have continued to emerge related to a credit union CFO who allegedly walked into a police station and claimed he had embezzled $20 million over a 12-year period.
As CUToday.info reported here, Michael LaJoice, 36, the former CFO at Clarkston Brandon Community CU, has been charged with 14 felonies related to alleged thefts from CBCCU. The thefts allegedly occurred from 2003-2012.
Late last week LaJoice reportedly walked into an Oakland County (Mich.) Sheriff’s Office and admitted to the theft to police, who said “We weren’t even aware of this until he came forward.” The fraud was reportedly discovered during an audit at the credit union on Jan. 4.
But an attorney who is representing LaJoice, Michael Manley, said any statements attributed to the former CFO need to be investigated further.
"I know he walked in and made statements, but we want to make sure the statements attributed to him are in fact true," Manley told The Flint Journal. "We are going to vigorously defend him. There has to be due process. There has to be tempered justice. If mistakes were made, we also want to be part of the solution to those who may have been victimized."
Prosecutors said additional evidence has emerged that show LaJoice’s lifestyle and assets far exceed the means of his $65,000 annual salary.
MLive.com reported that Oakland County Assistant Prosecutor Robert Hovy said LaJoice's Fenton home was lavish and featured a home theater and high-end appliances. "His salary does not support the lifestyle that this defendant has lived," Hovy was quoted as saying. "He was living a lifestyle of the rich and famous."
LaJoice owns a $1.3-million, 5,800-square foot home in Tyrone Township, Mich.
Investigators said they had frozen $800,000 cash from seven bank accounts just two days into their investigation. Hovy said that on Jan. 7 $40,000 was withdrawn from an account of LaJoice’s, but he did not say who made the withdrawal.
In addition, MLive.com reported that LaJoice is the owner of Chasse Ballroom and Latin Dance Studio and LaJoice Properties LLC, which purchased a 3.35 acre site for $1.25 million in downtown Fenton, Mich. in June of 2015.
Investigators said that was to be part of a $31-million project that was to include a two-story restaurant with a dueling piano bar, a fresh market, 53 condominiums, a parking structure and retail space along the Shiawassee River. That project has since been put on hold.
Additional charges are expected to be filed against LaJoice. He has so far been arraigned on 14 charges that include unlawful withdrawal and conversion for his own use of $1.9 million in credit union funds, including placing them in his personal accounts between Oct. 22 and Dec. 16. Court documents indicate that withdrawals of $100,000, several on the same day, were made. LaJoice has entered a not guilty plea in Clarkston District Court.
Bond has been set at $1 million for LaJoice, who remains in jail, and his attorney has said he intends on making a motion for a bond reduction. Prosecutors have asked for a $20-million bond and said LaJoice is a flight risk.
At press time, Clarkston Brandon Community CU had not issued any statement nor included any message on its website relative to the allegations. The Detroit News quoted CBCCU CEO Donna Bullard as saying, “We are currently conducting an investigation into an possible embezzlement of funds from the credit union by a former employee. While this investigation is proceeding, we want to assure our members that it is business as usual at the credit union.”
The Michigan league said it has contacted both the credit union and the Department of Insurance and Financial Services to provide assistance in any way it can.
CBCCU has 9,300 members and assets of more than $68 million. It reported net income of $244,463 as of Sept. 30, 2015.