PHILADELPHIA – A career drug dealer who was sentenced to 25 years in prison Friday revealed evidence that led authorities to a $2.3-million embezzlement by the CEO of Borinquen FCU, which collapsed earlier this year amid the scheme, prosecutors said Friday during a sentencing hearing for the drug dealer.
Prosecutors told a U.S. judge during the hearing when U.S. Postal Service inspectors tracked a package of cocaine from Puerto Rico to Angel Maldonado’s North Philadelphia home in April 2010, they believed they were closing in on a drug dealer. They also discovered clues to the credit union embezzlement that ultimately caused the failure of the one-time $7-million community development credit union, which led to the arrest of its manager, Ignacio “Nacho” Morales.
Morales last month pleaded guilty to charges of fraud, tax evasion, money laundering and, among other misdeeds, using almost $600,000 of the credit union’s money to buy cocaine. He is scheduled to be sentenced Dec. 7.
Postal Service agents who raided Maldonado’s house two years ago said they found and seized $14,000 in cash, court records show. At the time, Maldonado said the money was not drug proceeds, but rather a loan to his wife from Morales and even produced a letter from Morales vouching for the loan. The ensuing investigation led to the charges against Morales and the collapse of the credit union, which had served the Hispanic community in the North Philadelphia neighborhood for almost three decades.
Maldonado tried to take credit for tipping agents to that case. He told the judge he agreed to help “the banker” in a drug deal only because his family needed money to avoid being evicted from their home.