INDIANAPOLIS, Ind. (WOWO) — The former Chief Executive Officer of the Richmond City Employees Federal Credit Union has been sentenced to two years in federal prison after admitting to a fraudulent loan scheme used to fund a home purchase and pay off personal debts. Daniel Johnson, 37, of Centervil le, Indiana, was sentenced Wednesday by U.S. District Court Judge Richard L. Young. In addition to his 24-month prison term, Johnson was ordered to serve two years of supervised release and pay $285,855.66 in restitution. According to court documents, Johnson abused his authority as CEO and Manager of the credit union in late 2021. While credit union officials are allowed to apply for loans, policy requires them to be reviewed and approved by the Board of Directors. Federal prosecutors say Johnson bypassed these safeguards by: Submitting two fraudulent applications for $150,000 each, claiming the funds were for the purchase of recreational vehicles. Falsely representing that the Board of Directors had approved the loans when no such meetings or votes occurred. Forging his wife’s signature on the second loan application to make it appear as a joint request. In reality, Johnson never intended to buy the RVs. Instead, he used the money to pay off existing loans, settle student debt, and purchase a personal residence. Because there were no actual vehicles to serve as collateral, the credit union was left with $300,000 in unsecured losses. The Richmond City Employees Federal Credit Union—which served local public servants—merged into Kemba Credit Union in April 2023. Law enforcement officials emphasized that Johnson’s crimes struck at the heart of the institution’s mission. “As the CEO, Johnson was tasked with protecting money earned by hardworking public servants for the City of Richmond. Instead, he chose to abuse this trust and line his own pockets,” said Tom Wheeler, U.S. Attorney for the Southern District of Indiana. FBI Indianapolis Special Agent in Charge Timothy J. O’Malley added that the sentence serves as a reminder that the bureau will continue to pursue those who exploit financial institutions from the inside. The post Former CEO Sentenced For Fraud appeared first on WOWO News/Talk 92.3 FM and 1190 AM. ...read more read less