Kam Wong's attorney responds to the NCUA ban.
A New York attorney representing CEO Kam Wong, who has been accused of stealing millions from the $2.8 billion Municipal Credit Union, criticized a decision by the NCUA to ban his client from participating in the affairs of any federally insured credit union
Typically, the independent federal agency places former credit union employees on its prohibition list after they have been convicted of theft, embezzlement or other fraud crimes. However, the NCUA board made an exception Thursday to ban Wong so that he would no longer pose a threat to the interests of MCU's 431,000 members and impair public confidence in one of New York's largest credit unions.
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"It's very disappointing that the NCUA has convicted Kam before he's even been indicted in this case, let alone convicted, despite all the good he has done at the MCU after decades of dedication and hard work," said Jeff Lichtman, who is defending the CEO and earlier argued the millions in payments Wong received were open and transparent with the board.
Although a criminal complaint was filed in Manhattan's federal court on May 8 against the 62-year-old Wong with allegations that he stole millions from MCU over five years, he has not been yet been indicted and formally arraigned on felony charges. A preliminary hearing for Wong is scheduled for June 7 in U.S. District Court.
During a special meeting on Wednesday, the board of directors voted to begin termination proceedings against Wong based on the findings of an ongoing internal investigation led by the credit union's outside counsel.
"While MCU placed Mr. Wong on administrative leave in February, and MCU will fully honor the due process requirement in Mr. Wong's contract, it looks forward to a swift conclusion of the termination process," MCU said in a prepared statement Thursday. "This is an ongoing investigation and we are unable to comment further at this time."
The federal criminal complaint alleges that Wong committed embezzlement, bank fraud, wire fraud and aggravated identify theft.
According to federal investigators, Wong's alleged schemes included getting reimbursed for fake dental work; personal tax liabilities; millions in cash payments in lieu of long-term disability insurance payments and millions more for taxes to cover those payments; fake car repair bills on one of his luxury cars leased to him by the credit union; educational, housing and living expenses for two relatives; annual cash advances; ATM withdrawals and cash payments in place of 320 sick days he never used that violated his contract.
"It's our position, and has been from day one, that every single thing that he has done in regards to any payment he has received from the credit union has been transparent and open with the directors of the credit union," said Lichtman.
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Peter Strozniak
Credit Union Times reporter covering credit union operations, fraud, M&As, leagues, business continuity, and breaking news.
