Dave Lugo, a former IT executive who embezzled millions from the $11.1 billion SchoolsFirst Federal Credit Union to buy and sell computer equipment, will start his 51-month federal prison sentence on June 22.

Lugo, 41, was ordered to pay restitution of $2.6 million and serve two years of supervised release after serving his prison term by U.S. District Court Judge Josephine L. Staton in Santa Ana, Calif. on May 22, according to court documents.

The former vice president for the Santa Ana-based credit union pleaded guilty in September 2014 to two felony counts of mail fraud and two felony counts of wire fraud.

Although Lugo was facing up to 80 years in prison, federal prosecutors recommended a 51-month prison sentence because he had no prior criminal history, accepted full responsibility for his criminal acts and because his wife suffers from debilitating health problems. According to court documents, Lugo has been the sole supporter of his wife both financially and emotionally.

What's more, Lugo provided prosecutors with details of the mechanics of his scheme, which is expected to help Schools First FCU recognize and prevent similar schemes from occurring again, court documents showed.

In a plea deal with federal prosecutors, Lugo admitted to ordering IT equipment that was neither needed nor authorized by SchoolsFirst FCU. He wired funds from a credit union account to pay for the equipment. The checks cleared via wire transfer through the Sixth Federal Reserve District in Atlanta.

Once the IT equipment was delivered by the U.S. Mail or UPS to the credit union, Lugo removed it and sold the hardware at discounted prices to various resellers, including to resellers in Orange County, Calif.

Federal prosecutors said in court documents that Lugo knew Schools First FCU was unlikely to detect his theft as the inventory of the IT department was not well monitored, and other employees were not in a position to understand the credit union's IT equipment needs.

Lugo was hired by SchoolsFirst in 2000 as a systems administrator, and he eventually worked his way up to vice president of IT, earning more than $15,000 a month.

Court documents showed Lugo's fraudulent scheme began in 2003 and continued through July 2014.

When Lugo suspected his theft had been discovered, he attempted to erase any computer entries relating to the purchases of the IT equipment he stole and sold, according to prosecutors.

Federal prosecutors said Lugo deposited the embezzled funds in his personal Wells Fargo bank account and spent the money on a family trip to Hawaii, a European vacation with his wife, family trips to Disney World as well as multiple trips to Las Vegas and other local casinos and resorts.

He also used the stolen money to pay for his daughter's education at the University of Southern California, vehicles for his wife and himself, jewelry for his wife and daughter and medical bills for a family member, according to court documents.

Though SchoolsFirst released a prepared statement after Lugo's guilty plea, it kept mum on specifics as to how and why this fraudulent scheme occurred, citing in part security reasons.

“For security reasons, we cannot divulge the details of our internal procedures,” SchoolsFirst said in response to one of several questions asked by CU Times. “However, we can share that since the incident was discovered, the credit union has implemented additional internal and external audits and controls to ensure this doesn't happen again.”