PHILADELPHIA – A former director of Borinquen FCU was indicted today on charges he intentionally overdrafted his accounts by more than $500,000 to purchase local real estate, contributing to the 2011 failure of the $7 million community development credit union.

According to the indictment, Miqueas Santana, 43, was allowed to overdraft his accounts by the credit union’s manager, Ignazio “Nacho” Morales, who was sentenced to 90 months in federal prison in January for embezzling $2.3 million from the CDCU.

Santana allegedly drew more than $528,000 out of Borinquen accounts between 2009 and 2011 for real estate purchases and expenses related to a check-cashing business he owned.

The 38-year-old CDCU served low-income Hispanics in North Philadelphia, collapsed two years ago after investigators uncovered the fraud. Morales later admitted to laundering fraudulent IRS refund checks, stealing from credit union coffers and trying to arrange cocaine deals.

Morales also confessed to letting a member of the credit union's board of directors overdraw on his accounts. Neither he nor prosecutors had identified the director until Santana was charged this week.

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