After a four-day trial and four hours of deliberation, a federal jury found a former credit union CEO guilty of bank fraud and other felonies last week in U.S. District Court in Peoria, Ill.
Charles Juska, 53, former president of the $23 million Tazewell County School Employees Credit Union in Pekin, Ill., was indicted in May 2014 on 18 felony counts of bank fraud, making false entries and misapplying funds of $550,000.
He executed a loan scheme that benefitted members with bad credit and falsely minimized the institution's loan delinquencies.
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On May 20, the jury found Juska guilty of 11 felony counts of bank, fraud, making false entries and misapplying credit union funds. However, the jury also found Juska not guilty on seven felony counts of bank fraud, making false entries and misapplying credit union funds.
Juska's lawyer, Joel E. Brown of Peoria, argued that his client did not profit from his conduct and wanted to help credit union members who fell into hard times. However, federal prosecutors countered that Juska did so at the cost of hundreds of thousands of dollars to the credit union, the Journal Star reported.
At the end of the trial, prosecutors convinced the jury that the evidence showed Juska forged members' signatures, created numerous fraudulent loans, shifted money between accounts and falsified the books over a five-year span.
For members who were not eligible for a loan or having trouble making loan payments, Juska created loans in the names of other members by forging their signatures. He then used those funds to cover other members' loans and delinquencies, prosecutors said.
In addition, Juska created new loans for members with delinquent loans and used those funds to make payments on the delinquencies. He also concealed some delinquencies by writing loan advances on existing loans, allowing members to use the advances to make payments on the same loans.
In loan applications, he entered false information such as listing collateral that did not exist. He also failed to verify the value of other collateral. Federal prosecutors also said Juska used the same collateral for multiple loans, resulting in unsecured or under-secured loans.
The former CEO also concealed delinquent loans from the board of directors and loan committee by adjusting loan rates to lower the payments while not revealing the lower rate to the board.
Juska served as the credit union's president for 17 years before his departure in December 2010.
Juska, who remains free on bond, will be sentenced Sept. 22.
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