According to court documents filed by federal prosecutors on March 14, Johnson allegedly created two member accounts in the names of DAJ Consolidated and Daniel A. Johnson, effectively raising his borrowing limit to $450,000. He also ensured that his original assigned account number was not associated with these embezzled loans that would have exceeded his credit limit.

Richmond City Employees FCU provided personal loans to qualified members, including secured vehicle loans. Each qualified member was permitted to borrow up to $150,000 in secured loans or $10,000 in unsecured loans.

In August 2021, Johnson allegedly filled out a loan and security agreement, and a disclosure statement, to obtain a $150,000 loan to buy a recreational vehicle. He also falsified credit union records to indicate the board of directors approved the loan. In effect, Johnson granted himself a $150,000 unsecured loan without the board’s approval, according to court documents.

After transferring the loan funds to his personal checking account, he paid off previously obtained credit union loans valued at $65,697 and removed the security interest associated with those loans. Johnson also allegedly used a portion of the embezzled loan funds to pay off his mortgage, credit card debt and debit card purchases.

A month later, he allegedly filled out a second loan and security agreement, along with a disclosure statement, for another $150,000 loan to purchase second recreational vehicle. However, on that loan paperwork, Johnson forged the signature of his then-wife to conceal from the board that he was seeking the loan for personal use.

After processing the second loan application, he allegedly wired those funds to his personal checking account. He used that money to pay off a secured credit union loan valued at $10,103, as well as additional credit card debt and debit transactions, according to court documents. Prosecutors are seeking a money judgement of $285,855.

Richmond City Employees FCU, which served 788 members, was conserved at the end of 2022 because of unsafe and unsound practices not specified by the NCUA.

The credit union recorded a loss of $578,414, according to its last Call Report in March 2023. A month later, Richmond City Employees FCU was merged into the $1.8 billion Kemba Credit Union in West Chester, Ohio.

READ MORE: Dan Johnson’s Information Document.

Peter Strozniak can be reached at [email protected].