Metro-East News

Former Scott Credit Union manager faces up to 240 years in prison

Theodore J. Longust, 50, was found guilty of an embezzlement scheme while working in Scott Credit Union’s commecial loan department.
Theodore J. Longust, 50, was found guilty of an embezzlement scheme while working in Scott Credit Union’s commecial loan department. AP

A 50-year-old man formerly from Columbia pleaded guilty in federal court to nine indictments accusing him of fraud on Thursday.

Theodore J. Longust was indicted on nine charges, including one count of financial institution fraud, four counts of misapplication of funds, three counts of money laundering and one count of making a false record to Scott Credit Union with the intent to deceive, Acting U.S. Attorney James L. Porter said in a press release.

Longust was an employee of Scott Credit Union in the commercial loan department from November 2005 through December 2014 with the title of Business Relationship Manager. Porter said Longust “executed a scheme to defraud through the embezzlement of credit union funds, the creation of fraudulent loans, the payment of loans through the misapplication of funds from other loans, the increase of credit limits on loans that did not have the requisite board approval, the issuance of business loans without the required documentation or security and the issuance of letters of credit without the required documentation and security.”

The indictment also alleged that Longust knowingly submitted a false report to Scott Credit Union for the third quarter of 2014 that “misstated loan balances and omitted loan amounts and under-reported loans of over $12M.”

Longust faces a prison sentence of up to 240 years, a fine of up to $4.5M, up to five years of supervised release and mandatory restitution. Sentencing is scheduled for Sept. 6.

“While we are not in the business of giving the public financial or legal advice, the public should know that our investigation revealed that the safety and soundness of Scott Credit Union has not been adversely affected by the criminal conduct,” Porter wrote. “We thank the employees of Scott Credit Union who fully cooperated in our federal investigation.”

The prosecution is the result of an investigation by the FBI and the IRS/Criminal Investigations with the assistance of Scott Credit Union. The case is being prosecuted by Assistant U.S. Attorney Norman R. Smith.

  Comments