HUNTINGTON, W.V. – CUMIS Insurance Society filed a civil suit Friday against the former long-time manager of Huntingtonized FCU and his wife claiming the couple embezzled more than $100,000 from the $25 million credit union.
In its suit, filed in U.S. District Court for the Southern District of West Virginia, the credit union insurer claims that James Raines, who headed the credit union for 12 years until his August 2008 retirement, began recording phony expenses in the credit union’s ledger as early as 2004 with corresponding deposits into family members’ accounts, including his wife and three daughters.
The suit claims that Raines performed the transactions using either his own teller identification, the general “operator” teller identification, or another employee’s teller identification. “Many of the fictitious deposits were made to the joint account of Mr. Raines and Ms. Raines and occurred when the account would approach a zero balance or actually negative,” the suit says.
The entries, usually of small amounts, were usually performed near the end of the business day after the credit union lobby had closed at 4 pm, the suit claims.
CUMIS, a unit of CUNA Mutual Group, filed the civil suit in an attempt to recover $102,722 in a bond claim it paid to the credit union.