A former employee of the credit union that serves university faculty and staff was convicted of bank fraud and theft of about $200,000 from the company on Monday, according to a Department of Justice press release.
Reginald Clark was fired from Hoya Federal Credit Union in 2003 after an internal investigation conducted by the financial institution showed that his work as an accountant produced financial irregularities, said Hazel Logan, manager and Chief Executive Officer of HFCU. The company then notified federal authorities and the National Credit Union Administration.
Clark was taken into custody directly after the hearing, according to his lawyer, Kevin McCants. He will be sentenced on April 28 and faces 51 to 63 months in prison.
McCants said that he will file a request for a new trial within the next month due to potential bias in the jury. One of the jurors for the trial was a law fellow at the Georgetown University Law Center, according to McCants. He will also file for Clark’s release from custody within the next five days.
According to Logan, the credit union’s money was recovered.
“Hoya Federal Credit Union was reimbursed by its insurance and incurred no losses as a result of this incident,” she said. “At no time were individual members’ accounts in jeopardy due to the actions of this individual.”
The credit union has taken steps to ensure that a similar incident will not occur again.
“The board developed a plan to reallocate financial and human resources to create a better segregation of fiscal responsibility among the credit union’s staff in order to prevent this kind of incident from taking place in the future,” Logan said.
The Hoya Federal Credit Union operates independently of the university.
— Hoya Staff Writers Jonathan Gillis and Laura Engshuber contributed to this report