The recent indictment of a real estate developer that allegedly obtained loans under false circumstances has brought Denali Alaskan Federal Credit Union some relief.

Lee Baker Jr. has been charged with 14 counts including fraud and money laundering for allegedly making false statement to secure loans from the $444 million credit union in Anchorage. He is facing a maximum penalty of 30 years in prison and a $1 million fine.

Denali Alaskan had a separate civil legal action involving Baker and his company, Discovery Construction, which was settled previously, according to Bob Teachworth, president/CEO of the credit union.

“Denali Alaskan supports the action taken by the U.S. Attorney's office. The office, after their research, has determined they also have a case against Mr. Baker and we will certainly follow this case as it now goes through the court system,” Teachworth wrote in a statement to Credit Union Times.

Baker allegedly made several transactions through Denali Alaskan in Anchorage dating back to 2005 to fund several condominium units. To obtain the loans, the U.S. Attorney's Office said Baker transferred property from his company to himself and then back to his company.

After the sale back to Discovery Construction, Baker told Denali Alaskan that a $1.4 million deal went through and obtained financing from the credit union. However, he allegedly used the funds received from Denali Alaskan to reduce his shareholder debt to his construction company.

In another condo deal, Baker also allegedly lied to the credit union after drawing down proceeds of a $9.2 million loan for an Anchorage apartment project. He ended up defaulting on the loan, the indictment noted.