The board of directors of $2.9 billion-asset Municipal Credit Union of New York City has terminated its former President and CEO Kam Wong, following allegations of embezzlement and fraud at the credit union.

Wong was placed on leave on February 22, and Norman Kohn has been serving as the credit union’s acting president and CEO since that time.

The United States Attorney’s Office for the Southern District of New York has been conducting an investigation that led to Wong’s arrest on May 8.

Kam Wong, Muncipal Credit Union
Kam Wong, former president and CEO of Muncipal Credit Union

As reported, Wong has been charged with various crimes, including fraud, embezzlement and aggravated identity theft offenses related to defrauding the credit union in connection with numerous sham expense reimbursements. Last month Wong was also the subject of a prohibition order from the National Credit Union Administration, barring him from participating in the affairs of any federally insured financial institution.

MCU further said it has been cooperating with the U.S. Attorney’s Office and is conducting its own internal investigation led by outside counsel.

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