PHILADELPHIA – Federal authorities are seeking the former CEO of Borinquen FCU after he missed yesterday’s court hearing where he was scheduled to plead guilty to drug dealing and embezzlement charges in last year’s failure of the $7 million community development credit union.
A federal judge issued a bench warrant for Ignacio “Nacho” Morales after the 40-year-old CDCU figure failed to appear on charges he stole as much as $2.3 million from the low-income credit union, forcing NCUA to shut it down in July 2011.
Prosecutors said Morales embezzled $600,000 from the $7 million credit union to purchase real estate, and during the period of September through December 2009, he allegedly took $560,000 from Borinquen to attempt to purchase 15 kilograms of cocaine.
Prosecutors added that in September 2008, he failed to deposit $700,000 into an account of a Borinquen member, and instead used the money for his own purposes. They claim that he intentionally altered credit union records and other reports provided to the NCUA and their auditors in order to conceal the various schemes.
The CDCU was chartered in 1974 to serve several hundred families in a low-income neighborhood of Philadelphia.