Yonkers Deposits Are Federally Insured, But Now Scammed Union Members Will Have To Go To Co-Op City To Bank
From The Desk Of RoundupNewswires.com Publisher And Editor Brian Harrod....
BREAKING: #MCUCreditUnion Shutting Down Its Getty Square Branch Next To City Hall
BANK FRAUD: Municipal Credit Union Plans Closure Of #Yonkers Branch And Other Branches In NYC.
BS STATEMENT: Plagued by massive fraud and corruption cases, the New York City credit union uses a positive spin in announcing the #Yonkers branch shut down
NEW YORK CITY: The negative fallout from its massive fraud and corruption cases continues for the $2.9 billion Municipal Credit Union in New York
YONKERS: The Yonkers branch closing announcement is more likely an attempt to slow or stem the credit union’s financial problems after posting huge net income losses in the last two quarters and losing more than 17,000 members in the months after former President / CEO #Kam #Wong was sentenced to five years in prison for stealing nearly $10 million.https://www.facebook.com/
Former President / CEO Kam Wong's case led to federal charges against the credit union’s former board chair and a supervisory committee member.
“In an effort to streamline our operations and serve our members more efficiently, we will close six branches on January 31, 2020,” MCU said in a prepared statement.
The announcement posted on MCU’s website homepage made no mention as to why these branches were targeted for closing.
https://www.nymcu.org/
The statement also did not address how many employees would be affected by the branch shutdowns, whether they would be laid off or reassigned to the remaining branches.
The branch closings may be one of the steps MCU is taking to slow or stop the bleeding of its massive net income losses.
MCU posted a net income loss of $113 million at the end of the third quarter compared to a $19.6 million income gain at the end of last year’s third quarter.
In the same time frame, the credit union’s net worth has plummeted from 8.26% to 3.87%, making it significantly undercapitalized.
However, the credit union’s average salary and benefits of its full-time employees has soared from $118,403 at the end of the 2018’s third quarter to $369,498 at the end of the 2019’s third quarter.
At the end of last year’s second quarter, that number topped $434,688, according to NCUA financial performance reports.
Since MCU has been rocked by corruption scandals, it has lost more than 17,000 members.
The federal investigation that convicted former President / CEO Kam Wong led to criminal charges against Sylvia Ash, a judge of the Kings County Supreme Court and former MCU board chair.
Additionally, Joseph Guagliardo, a retired New York City cop and former member of MCU’s supervisory committee, was charged separately with embezzlement, fraud, and controlled substance offenses.
After the allegations were made against Ash and Guagliardo, Geoffrey S. Berman, United States Attorney for the Southern District of New York, said these charges reflect the latest in “our ongoing work to uncover criminal conduct at the highest levels of MCU.
ADDITIONAL INFO >>> CRAINS NY BUSINESS: Judge charged with obstructing justice in big credit-union case wants bracelet removed
From The Desk Of RoundupNewswires.com Publisher And Editor Brian Harrod....
BREAKING: #MCUCreditUnion Shutting Down Its Getty Square Branch Next To City Hall
BANK FRAUD: Municipal Credit Union Plans Closure Of #Yonkers Branch And Other Branches In NYC.
BS STATEMENT: Plagued by massive fraud and corruption cases, the New York City credit union uses a positive spin in announcing the #Yonkers branch shut down
NEW YORK CITY: The negative fallout from its massive fraud and corruption cases continues for the $2.9 billion Municipal Credit Union in New York
YONKERS: The Yonkers branch closing announcement is more likely an attempt to slow or stem the credit union’s financial problems after posting huge net income losses in the last two quarters and losing more than 17,000 members in the months after former President / CEO #Kam #Wong was sentenced to five years in prison for stealing nearly $10 million.https://www.facebook.com/
Former President / CEO Kam Wong's case led to federal charges against the credit union’s former board chair and a supervisory committee member.
“In an effort to streamline our operations and serve our members more efficiently, we will close six branches on January 31, 2020,” MCU said in a prepared statement.
The announcement posted on MCU’s website homepage made no mention as to why these branches were targeted for closing.
https://www.nymcu.org/
The statement also did not address how many employees would be affected by the branch shutdowns, whether they would be laid off or reassigned to the remaining branches.
The branch closings may be one of the steps MCU is taking to slow or stop the bleeding of its massive net income losses.
MCU posted a net income loss of $113 million at the end of the third quarter compared to a $19.6 million income gain at the end of last year’s third quarter.
In the same time frame, the credit union’s net worth has plummeted from 8.26% to 3.87%, making it significantly undercapitalized.
However, the credit union’s average salary and benefits of its full-time employees has soared from $118,403 at the end of the 2018’s third quarter to $369,498 at the end of the 2019’s third quarter.
At the end of last year’s second quarter, that number topped $434,688, according to NCUA financial performance reports.
Since MCU has been rocked by corruption scandals, it has lost more than 17,000 members.
The federal investigation that convicted former President / CEO Kam Wong led to criminal charges against Sylvia Ash, a judge of the Kings County Supreme Court and former MCU board chair.
Additionally, Joseph Guagliardo, a retired New York City cop and former member of MCU’s supervisory committee, was charged separately with embezzlement, fraud, and controlled substance offenses.
After the allegations were made against Ash and Guagliardo, Geoffrey S. Berman, United States Attorney for the Southern District of New York, said these charges reflect the latest in “our ongoing work to uncover criminal conduct at the highest levels of MCU.
ADDITIONAL INFO >>> CRAINS NY BUSINESS: Judge charged with obstructing justice in big credit-union case wants bracelet removed
Judge Sylvia Ash used to serve as chairwoman of #MunicipalCreditUnion, a financial institution that serves 600,000 working New Yorkers.
The credit union was shaken to its core when former CEO Kam Wong was charged with embezzling $10 million.
He pleaded guilty and was sentenced in June to 66 months in prison.
His theft so damaged the 103-year-old credit union that it was seized by federal regulators this year....
FLASHBACK >>> WCBS - TV: Municipal Credit Union President Accused Of Embezzlement, Allegedly Spent Millions On Lottery Tickets
NEW YORK (CBSNewYork) – The CEO and president of the Municipal Credit Union is facing charges of embezzlement and fraud for allegedly funneling millions of dollars into his own credit union account.
The alleged crimes took place from at least 2013 through January of this year.
Prosecutors say Kam Wong would submit sham invoices, including receiving reimbursement for dental work never performed and luxury vehicle repairs already covered by insurance.
He is also accused of withdrawing cash with a credit union business card to “test the ATMs.”
“As alleged, the CEO and president of New York’s oldest credit union abused his position of trust as a guardian of municipal, state, and federal workers’ financial accounts to enrich himself,” U.S. Attorney Geoffrey Berman said. “Kam Wong allegedly stole money from the credit union’s earnings that were intended to reward the credit union’s members, not line Wong’s pockets.”
Wong allegedly spent more than $3.5 million on New York state lottery tickets from his credit union account.....
Municipal Credit Union
Address: 38 S Broadway, Yonkers, NY 10701
Phone: (212) 693-4900
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