Prosecutors in Talks With Attorney for Fired CU CEO Kam Wong
A plea deal may be in the works for Kam Wong.
Federal prosecutors said in court documents that they have had discussions with Lichtman “regarding a possible disposition of the case.”
This new development may likely mean both sides are hammering out details of a plea deal in which Wong would agree to fully cooperate with federal prosecutors. In exchange, federal prosecutors could agree to drop some of the felony charges, which may result in a lighter prison sentence for the former CEO.
“The discussions have not been completed and we plan to continue, but do not anticipate a resolution before the deadline under the Speedy Trial Act, [which] expires on June 7,” wrote Eli Mark, assistant U.S. attorney for the Southern District of New York.
Although Eli filed the court document on June 7 that requested a federal judge extend the deadline to file an indictment against Wong, the court documents were not entered into the online federal docket until Thursday. The Speedy Trial Act required federal prosecutors to file an indictment or information document against Wong on June 7.
The prosecutor’s deadline was moved to July 7 by U.S. District Court Judge Robert Lehrburger.
Wong was fired Monday by MCU’s board of directors.
The termination came five weeks after a criminal complaint was filed in Manhattan’s federal district court that accused the 62-year-old executive of allegedly stealing millions of dollars from MCU through various fraudulent schemes from 2013 to 2018. Wong, who was appointed CEO of one of New York’s largest credit unions in 2007, was placed on administrative leave by the board in February after receiving a recommendation from a special committee that is overseeing an internal investigation prompted by the federal criminal probe.
The federal 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 as well as personal tax liabilities for that benefit; millions in cash payments in lieu of long-term disability insurance payments and millions more for taxes to cover those payments. He also allegedly submitted reimbursements for fake car repair bills on one of his luxury cars leased to him by the credit union and educational, housing and living expenses for relatives. Investigators found Wong received questionable annual cash advances as well as ATM withdrawals and received cash payments in place of 320 sick days he never used that violated his contract.
Wong deposited the funds from his schemes into an MCU account. He then withdrew approximately $1.9 million via ATMs over the course of more than 2,500 transactions – an average of more than one and a half transactions per day from which from July 2013 and January 2018.
Federal investigators also determined Wong bought $3.5 million in New York lottery tickets, and he borrowed money from two individuals to buy even more lottery tickets.
Lichtman, a New York-based high-profile criminal defense attorney, has argued that the payments his client received were transparent and open with the board.
On May 31, the NCUA board took the unusual action to ban Wong from participating in the affairs of any federally insured financial institution so that he would no longer pose a threat to the interests of MCU members and impair the credit union’s public confidence. Typically, the NCUA places former credit union employees on its prohibition list after they have been convicted of theft, embezzlement or other fraud crimes.
The former executive is free on a $1 million bond that was secured by his home on Long Island’s Valley Stream. He was also ordered to wear an electronic monitoring device and undergo a mental health evaluation and treatment, according to court documents.