Kam Wong, the former Municipal Credit Union CEO who allegedly embezzled millions of dollars, is included in this month’s prohibition orders from the National Credit Union Administration.
Persons named in a prohibition order are permanently barred from having anything to do with the inner workings of a federally insured financial institution.
As Credit Union Journal has reported, Wong was charged with the crimes of embezzlement, defrauding a financial institution, and wire fraud in the U.S. District Court for the Southern District of New York.
NCUA explained that after determining that continued service or participation by Wong in the credit union’s operations may pose a threat to the interests of the credit union’s members or may threaten to impair public confidence in the credit union, the agency’s board issued a notice prohibiting Wong from further participation in the affairs of any credit union.
NCUA also issued a similar ban against Debra L. Buber, a former employee of the $5.5 million STOFFE Federal Credit Union, Solon, Ohio. Buber pleaded guilty to the charge of theft and was sentenced to 30 days in prison, one year of probation and ordered to pay $5,000 in restitution.
In response to Wong's prohibition notice, Municipal CU's board of directors on May 30 voted to begin termination proceedings against Wong based on the findings of its ongoing internal investigation led by outside counsel.
“The same day, the National Credit Union Administration delivered to MCU a Notice of Prohibition regarding Mr. Wong,” MCU added. “While MCU placed Mr. Wong on administrative leave in February, and MCU will fully honor the due process requirements in Mr. Wong’s contract, it looks forward to a swift conclusion of the termination process. This is an ongoing investigation and we are unable to comment further at this time.”
This story was updated at 9:30 a.m. ET on June 1, 2018