Skip to main content

Former CU Board Chair, New York Judge Sentenced to Prison

NEW YORK–A former Brooklyn Supreme Court judge who was found guilty of obstructing an investigation into the embezzlement of funds from a major New York credit union has been sentenced to 15 months in prison, meaning she will now join the CU’s former CEO in also  serving time.

Manhattan federal court Judge Lewis Kaplan sentenced Sylvia Ash to the term in prison. As a result, Ash resigned from her position as a justice of the New York State Supreme Court.

Ash had once served as the chairman of the board at Municipal Credit Union. As CUToday.info reported, following a two-week trial, Ash, 64, of Brooklyn, was convicted of conspiracy, obstruction of justice and making a false statement to a federal agent. She was acquitted of another obstruction count.

The verdict was returned in Manhattan federal court after jurors heard evidence supporting charges that she took steps over multiple months to obstruct the investigation into financial misconduct at Municipal Credit Union while she chaired the CU’s board.

According to prosecutors, the obstruction occurred while Ash served on MCU’s board from May 2008 to August 2016, when she resigned. She had served as the board’s chair from May 2015 until her resignation.

Bogus Reimbursements

Prosecutors had alleged Ash received tens of thousands of dollars in reimbursements and other benefits from the credit union from 2012 through 2016. The reimbursements included payments for airfare, hotels and entertainment for her and a guest to attend conferences domestically and abroad, along with annual birthday parties at a minor league baseball stadium and payment for phone, cable bills and electronic devices, authorities said.

Ash was charged in 2019 after she signed a false memo to justify payments that Wong took from MCU, which was given to law enforcement officers, according to the initial complaint.

She also deleted emails and text messages to destroy evidence related to the embezzlement, according to prosecutors.

Ash has also been sentenced to two years' supervised release and ordered to pay a fine of $80,000.

Former CEO Serving Time

As CUToday.info also reported here, the credit union’s former CEO, Kam Wong, has already pleaded guilty to embezzling more than $10 million. Wong was sentenced in June 2019 to five years in prison. The $3-billion credit union was placed into conservatorship in 2018 by NCUA but has since been returned to its members.

Comments

Post a Comment

Please no profanity or political comments.

Popular posts from this blog

Let the Truth be Told - Why a New NCUA Rule Could Jolt Credit Union Innovation

The National Credit Union Administration has finalized a rule to improve board and executive succession planning within the credit union industry. This strategic move aims to curb the trend of mergers driven by technological stagnation and poor succession strategies, ensuring more credit unions maintain their independence and enhance their technological capabilities. By Ken McCarthy, Manager of marketing communications at Tyfone Credit unions are merging out of existence because of an inability to invest in technology, the National Credit Union Administration Board wrote when introducing its now finalized rule on board succession planning. The regulator now requires credit unions to establish succession planning for critical positions in their organizations. But it’s likely to have even wider effects, such as preserving more independent charters and shaking up the perspectives of those on credit union boards. “Voluntary mergers can be used to create economies of scale to offer more or ...
Post a Comment
Read Complete Article HERE>»

Armand Parvazi MBA CUDE - Last Friday marked his last day with New Orleans Firemen’s Federal Credit Union.

It’s been an incredible journey, but it’s bittersweet to announce that Friday marked my last day with New Orleans Firemen’s Federal Credit Union. We've accomplished so much together in my six years as Chief Administrative and Development Officer. Some of the highlights: Implemented a data-driven marketing strategy that delivers over 1,800% annual ROI. Developed automated triggers to ensure members receive the right offers at the right time. Grew assets by 61% and increased products per new member from 1.88 to 2.62. Converted online banking to enhance the member experience. Introduced a loan origination system for faster and more efficient loan processing. Transitioned to a mobile-first financial institution to meet members where they are. Pioneered the first Cancer Care loan pause program in the nation (in collaboration with Andy Janning ) Secured nearly $17 million in grants for our impactful work. Expanded our field of membership to 35 parishes and counties and added numerous fi...
Post a Comment
Read Complete Article HERE>»

Biggest Social Security Changes for 2025

  Chris Gash Facebook Twitter LinkedIn Monthly payments are going up, and drop-in service at SSA offices is largely going away The  cost-of-living adjustment  (COLA) may be the most widely anticipated way Social Security changes from year to year, but it’s far from the only one. Inflation, wage trends and new policies directly affect not just the more than 68 million people receiving Social Security benefits but also the estimated 184 million workers (and future beneficiaries) paying into the system.  Here are seven important ways Social Security will be different in 2025. 1. Cost-of-living adjustment Inflation continued to cool this year , resulting in a  2.5 percent COLA  for 2025 for people receiving Social Security payments, down from  3.2 percent in 2024 . The estimated average retirement benefit will increase by $49 a month, from $1,927 to $1,976, starting in January, according to the Social Security Administration (SSA). It’s the lowest COLA i...
Post a Comment
Read Complete Article HERE>»