Former Credit Union CEO Pleads Guilty to Bank Fraud
John H. Durham, United States Attorney for the District of Connecticut, and Brian C. Turner, Special Agent in Charge of the New Haven Division of the Federal Bureau of Investigation, announced that JAMES FARRELL, 55, of East Haven, waived his right to be indicted and pleaded guilty today before U.S. District Judge Stefan R. Underhill in Bridgeport to one count of bank fraud.
According to court documents and statements made in court, Farrell was the Chief Executive Officer of the New Haven County Credit Union (“NHCCU”) from approximately 1992 to June 2015. He was then retained by NHCCU’s Board of Directors to provide assistance to the new CEO of NHCCU until March 2016. From 2010 until 2016, Farrell also provided financial and bookkeeping services to The Rib House, a restaurant located in East Haven. The Rib House maintained a business account at NHCCU, and Farrell was primarily responsible for depositing cash sales and paying invoices for the restaurant. In pleading guilty, Farrell admitted that he defrauded NHCCU by transferring of funds from NHCCU’s general ledger account to the account held by The Rib House.
As part of the scheme, when Farrell knew that The Rib House had a financial obligation it could not meet, he transferred funds from the NHCCU general ledger account into The Rib House account. This allowed The Rib House to pay its operating costs, including paying for taxes, food, liquor and other operating expenses. Between July 2011 and March 2016, Farrell fraudulently transferred $602,908.96 from the NHCCU general ledger account primarily to The Rib House account and, to a lesser extent, for his personal benefit. Over time, Farrell replenished $370,278.18 to the NHCCU general ledger account, leaving a shortfall of $232,630.78.
Judge Underhill scheduled sentencing for November 20, 2019, at which time Farrell faces a maximum term of imprisonment of 30 years.
Farrell has paid full restitution to NHCCU.
Read more: https://www.justice.gov/usao-ct/pr/former-credit-union-ceo-pleads-guilty-bank-fraud