Company sues credit union manager for embezzling funds by opening fake loan

A former credit union employee is being sued after he embezzled more than $200,000 by opening fake auto loans in the names of credit union members.

Cumis Insurance Society on Friday filed a lawsuit against Javier Herrera, who worked as the West Valley City branch manager for Utah Central Credit Union from May 2008 until May 2010. Beginning in August 2008, the lawsuit alleges, he opened loans under members? names without their consent and then pocketed the money. When the scheme was discovered, and about $235,000 was missing, the man was terminated and the credit union made a claim on its insurance for protecting money lost due to employee dishonesty.

Cumis paid the credit union about $220,000 ? the total sum minus the deductible and interest potentially earned on the loans ? and then sued Herrera for the money.

The insurance company is asking for the money, and "punitive and exemplary" damages to be determined at trial and attorneys fees. The company is also asking that Herrera not be able to get rid of or sell any assets, and that a trust be created for all of Herrera?s single and joint accounts and property.

smcfarland@sltrib.com

Twitter: @sheena5427

Source: http://www.sltrib.com/sltrib/news/53178258-78/credit-union-herrera-money.html.csp

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