The NCUA announced Thursday it received almost $5.4 million in restitution from a fraud prosecution, which will be returned to the share insurance fund.

In August 2012, Laura Conarton and her son, Scott Lonzinski, pleaded guilty in U.S. District Court to financial institution fraud.

"The two provided false documents to the credit union in order to obtain approximately $14 million in loans, which BCT Federal Credit Union was required to write off," the NCUA said in a press release. "They are serving federal prison sentences. The $5,391,641 recovery followed the seizure of bank accounts and property by the U.S. Attorney's office."

Complete your profile to continue reading and get FREE access to CUTimes.com, part of your ALM digital membership.

Your access to unlimited CUTimes.com content isn’t changing.
Once you are an ALM digital member, you’ll receive:

  • Breaking credit union news and analysis, on-site and via our newsletters and custom alerts
  • Weekly Shared Accounts podcast featuring exclusive interviews with industry leaders
  • Educational webcasts, white papers, and ebooks from industry thought leaders
  • Critical coverage of the commercial real estate and financial advisory markets on our other ALM sites, GlobeSt.com and ThinkAdvisor.com
NOT FOR REPRINT

© 2024 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.