William J. Memmer, a former assistant manager and treasurer at the failed $15.5 million G.I.C. Federal Credit Union, was sentenced May 28 to seven years in federal prison and ordered to pay $7 million in restitution.
"This lengthy sentence is reflective of the magnitude of Mr. Memmer's embezzlement and fraud he orchestrated for numerous years," Stephen Anthony, special agent in charge of the FBI's Cleveland office, stated in a press release. "Citizens should have a sense of trust that their investments are safe, and the FBI will continue efforts to root out greedy fraudsters like Mr. Memmer."
Memmer, 63, pleaded guilty earlier this year to one count of embezzlement and one count of making false entries in credit union records and reports.
Recommended For You
From as early as 2006, Memmer used blank G.I.C. FCU checks to pay almost $2 million on 15 personal credit card accounts, according to court documents.
In addition, he falsified quarterly financial reports and confirmations of the Euclid, Ohio credit union's assets by as much as $5.7 million to hide operating losses, the FBI said.
Upon discovery of the fraud, NCUA closed GIC. The 3,476-member cooperative was liquidated Dec. 13, 2012, after being declared insolvent.
According to a material loss review released Dec. 2, 2013, by the NCUA's Office of Inspector General, Memmer's actions caused the credit union to collapse, resulting in an estimated loss of $7 million to the National Credit Union Share Insurance Fund.
"This defendant betrayed the trust of the credit union's members and his employer," Steven M. Dettelbach, United States Attorney for the Northern District of Ohio, stated. "He simply took other people's money to pay his debts. Now, he'll pay his debt to society."
© 2025 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
