Credit Checks | Credit Union Supervisor Pleads Guilty To Embezzling

ROCKFORD – A Roscoe man pleaded guilty today to embezzling funds from a local credit union.

Thomas A. Miles, 42, the former collections supervisor of Rock Valley Federal Credit Union, pleaded guilty in U.S. District Court to embezzling $122,110.80 between October 2007 and August 2010 from the Rock Valley Federal Credit Union, 1201 Clifford Ave. in Loves Park.

According to the written plea agreement, Miles was employed by the credit union, which is responsible for overseeing collections on the credit union’s delinquent loans. The Collections Department routinely received checks from various parties that had collected funds owed by the credit union’s loan customers. As the collections supervisor, Miles was responsible for ensuring these checks were applied to the appropriate loan customers’ accounts.

During October 2007 through August 2010, Miles admitted he embezzled 163 loan customers’ checks made payable to the credit union. Miles directed tellers at the credit union to cash the checks and issue money orders in the amounts of those checks.

Miles then deposited the money orders into his personal savings account at AMCORE Bank. Finally, Miles transferred the funds back to his personal checking account at Rock Valley Federal Credit Union.

Miles used the funds he embezzled to pay his own personal expenses.

To conceal his embezzlements, Miles inappropriately credited portions of other checks received by the credit union to accounts that should have been credited with the checks Miles embezzled. These inappropriate credits made it appear that some funds were being collected on those customers’ accounts.

The charge in this case carries a maximum penalty of 30 years in prison, and a $1 million maximum fine, or an alternate fine totaling twice the loss or twice the gain, whichever is greater.

Miles’ sentencing is scheduled for 2:30 p.m. April 18.

The case is being prosecuted by Assistant U.S. Attorney Scott A. Verseman.

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