Crime & Safety
Credit Union CEO Accused of Stealing $2.3M from Veterans
The alleged embezzlement rendered Veterans Administration Credit Union insolvent and resulted in its closure.
The former CEO and president of the Veterans Administration Credit Union is accused of embezzling more than $2.3 million from the institution to “live a life of excess” in charges announced Friday.
Fautaina Afutiti, 50, of Westland, was charged with one count of receiving proceeds from a continuing criminal enterprise and one count of embezzlement from a credit union, Michigan Attorney General Bill Schuette said in a news release.
The alleged embezzlement occurred from 2012-2016 and was discovered in February during a routine audit of the credit union by the Credit Union Examiners from State of Michigan Department of Insurance and Financial Services that revealed significant irregularities and cash shortfalls, according to the release.
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Schuette said the investigation, which his office conducted with the Department of Insurance and Financial Services, revealed that Afutiti bought or leased several vehicles, including a a 2013 Mercedes Benz and a $100,000 motorhome. She also allegedly used the money for personal vacations, Schuette said.
According to audit, the total amount loss for the Veterans Administration Credit Union was $2,303,158.66. The alleged embezzlement rendered the credit union insolvent and required its closure, the attorney general said.
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“For a person to take advantage of Michigan veterans, many of whom are disabled and on fixed incomes, to use the money to live a life of excess is despicable,” Schuette said in the news release. “These men and women gave so much to allow us the freedoms we have in this country and anyone who takes advantage of that will face the consequences.”
Afutiti was released on $10,000 personal bond after her arraignment before 36th District Court Magistrate Bari Blake Wood. Conditions imposed for bond included a requirement that Afutiti surrender her passport, remain in the state of Michigan and have no contact with witnesses.
Afutiti’s next court appearance is at 8:30 a.m. on Sept. 15.
Mug shot provided by Michigan Attorney General’s Office
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