The CEO and president of Municipal Credit Union was arrested for embezzling millions of dollars from the institution, which is New York’s oldest credit union. He allegedly used most of the money to purchase lottery tickets amounting to $3.55 million, according to federal prosecutors.
Kam Wong, 62, was charged in Manhattan federal court with one count each of aggravated identity theft, embezzlement, bank fraud and wire fraud. The first charge carries a mandatory two-year prison sentence, while the other charges can result in a prison term of up to 30 years.
Wong was accused of using various illegal methods to defraud the credit union over a five-year period, and then attempting to cover up his illegal conduct. He collected hundreds of thousands of dollars in reimbursements by submitting bogus invoices for dental work. Wong also got reimbursed for over $25,000 in repairs to a credit union-leased car even though the work was covered by insurance.
In 2013, Wong used a business credit card to make cash withdrawals amounting to nearly $2 million, claiming he was testing out Municipal Credit Union ATMs. The complaint said he ultimately deposited nearly $6 million from the various schemes into an account that he accessed over 2,500 times from July 2013 to January this year. Wong withdrew a total of $1.9 million from it.