Daniel Johnson, the former Chief Executive Officer and Manager of Richmond City Employees Federal Credit Union, has been sentenced to two years in federal prison for bank fraud. Johnson, 37, from Centerville, Indiana, will also serve two years of supervised release and must pay $285,855.66 in restitution.
Court documents show that Johnson had significant authority over loan underwriting and processing at the credit union. While officials could apply for loans themselves, such applications required approval from the Board of Directors.
On August 5 and September 16, 2021, Johnson submitted two fraudulent applications for secured loans worth $150,000 each. He claimed the funds were intended for recreational vehicle purchases but did not plan to buy any vehicles. To carry out his scheme, Johnson falsely stated that the Board of Directors had approved these loans when they had not.
After obtaining the funds, Johnson used about $65,697.98 to pay off previous loans and remove the credit union’s security interest. He then diverted remaining funds to cover personal debts such as student loans and to purchase a home.
In one application in September 2021, Johnson also forged his then-wife’s signature to make it appear she requested a second loan. Through these actions, he obtained approximately $300,000 in unsecured loans. The credit union suffered losses estimated at $285,855.66.
“As the Chief Executive Officer, Johnson was tasked with protecting money earned by hardworking public servants for the City of Richmond. Instead, Johnson chose to abuse this trust and line his own pockets through dishonesty,” said Tom Wheeler, United States Attorney for the Southern District of Indiana. “His actions not only violated the law but also undermined the integrity of the institution he was entrusted to serve. The U.S. Attorney’s Office and our law enforcement partners will continue to hold accountable those who exploit positions of authority for personal gain.”
“Credit union members rely on their leaders to safeguard their finances – not misuse them for personal gain,” said FBI Indianapolis Special Agent in Charge Timothy J. O’Malley. “This sentence demonstrates the FBI’s commitment to pursuing those who exploit financial institutions through fraudulent schemes.”
The case was investigated by the FBI and sentenced by U.S. District Court Judge Richard L. Young.
Assistant U.S. Attorneys Adam Eakman and Kyle M. Sawa prosecuted this case.
