Daniel Johnson, former Chief Executive Officer and Manager of Richmond City Employees Federal Credit Union in Indiana, has been sentenced to two years in federal prison after pleading guilty to two counts of bank fraud. Johnson, 37, from Centerville, Indiana, will also serve two years of supervised release and must pay $285,855.66 in restitution.
Court records indicate that Johnson had significant authority over loan underwriting and processing at the credit union. Officials such as Johnson are allowed to apply for loans but require approval from the Board of Directors. On August 5 and September 16, 2021, he submitted two fraudulent applications for secured loans worth $150,000 each. He claimed these funds would be used to purchase recreational vehicles but did not intend to make such purchases.
Johnson misrepresented that the Board had approved his loan applications when no such approval was granted. After receiving the funds, he paid off previously secured loans totaling about $65,698—removing the credit union’s security interest—and then used the remaining money for personal debts and a home purchase.
In one application in September 2021, Johnson forged his then-wife’s signature to make it appear she requested the second loan herself. The total amount obtained through this scheme was nearly $300,000 in unsecured loans; losses for the credit union are 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 presided over by U.S. District Court Judge Richard L. Young. Assistant U.S. Attorneys Adam Eakman and Kyle M. Sawa prosecuted.
