Former CFO Pleads Guilty to Embezzlement

A former chief financial officer of a Clarkston credit union, pleaded guilty Thursday to embezzling more than $18 million from his employer, U.S. Attorney Barbara McQuade announced in a press release.

Michael A. Lajoice, 37, pleaded guilty to one count of bank fraud. According to plea documents, LaJoice was employed by the Clarkston Brandon Community Credit Union (CBCCU), a federally insured financial institution.

LaJoice began his employment with CBCCU as an account manager and became Chief Financial Officer in June 2015. He was responsible for the accounting functions of CBCCU, which included producing financial statements, making general ledger entries and ACH transfers, tracking investments and reconciling CBCCU’s corporate account statements.

Between January 2003 and January 2016, Lajoice embezzled more than $18 million from CBCU, according to court documents. Over the years, Lajoice used a variety of methods to execute and cover up his actions. In some instances, he issued cashier’s checks from various CBCCU accounts without authorization and deposited those funds into accounts at other financial institutions that he controlled. In other instances, Lajoice used Automated Clearing House (ACH) withdrawals to conduct unauthorized transfers from CBCCU’s accounts to his own personal accounts held at other financial institutions. To conceal the fraud, Lajoice created fictitious investments in certificates of deposit and bonds, and represented to auditors and bank examiners that the money he stole had in fact been invested in these vehicles.

LaJoice turned himself in to authorities earlier this year. He will be sentenced on March 21, 2017. He faces a maximum of 30 years’ in prison; his plea agreement calls for a term of imprisonment of between 10 and 12.5 years.

The case was investigated by the FBI, Oakland County Sheriff’s Department, and investigators from the Oakland County Prosecutor’s Office.