The head of the city's oldest credit union embezzled money from the fund for years — splurging on millions worth of lottery tickets — by submitting bogus invoices for dental work and other expenses, federal prosecutors said Tuesday.
Kam Wong, 62, from Valley Stream, L.I., who heads the Municipal Credit Union, allegedly used the ill-gotten gains to purchase some $3.55 million in New York State lottery tickets, according to Manhattan U.S. Attorney Geoffrey Berman.
He also "obtained numerous other payments from the Credit Union under suspicious or questionable circumstances" from at least 2013 through January 2018, Berman said in a press release announcing the arrest.
The embezzlement included lining his pockets with millions in cash payments instead of a long-term disability policy, prosecutors said. He also allegedly expensed millions for taxes to cover those payments.
On Tuesday, Wong was charged in Manhattan federal court with fraud, embezzlement, and aggravated identity theft.
According to officials, Wong — who ascended to an MCU leadership position after a financial scandal in the mid-1980s — got reimbursed for repairs made on a luxury vehicle the credit union leased to him, prosecutors said. The repair work was actually covered by insurance.
Wong also made cash withdrawals from a business credit card for supposedly "testing" the credit union's ATMs, the criminal complaint says. And he allegedly filed "substantial" educational, housing, and living expenses for two of his friends' relatives who were hired as credit union interns, authorities said.
Wong took "tens of thousands of dollars in annual cash advances" from the fund, court records show. He has been unable to explain where that money went, prosecutors said.
According to the complaint, Wong deposited some of the money from the various schemes into a credit union account that he tapped more than 2,500 times between July 2013 and January 2018.
All told, he withdrew $1.9 million from that account.
In February, he was placed on leave by the fund's board of directors based on a special committee overseeing an internal investigation based on the criminal probe.
His lawyer maintained Wong did nothing wrong.
"Kam Wong has added tremendous value to the credit union and under his stewardship, there have been record profits," said Jeffrey Lichtman. "Any actions he committed were done transparently and openly, with full consent of the credit union's board."
Before his arrest, Wong was hailed as an American success story.
He came to New York when he was 19 and lived with his parents and five siblings in a small apartment with one bathroom.
In 2006, he was named the head of the MCU after he spent years moving up the ranks. The fund has more than 425,000 members who are public employees are related to municipal staffers.
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Thanks to Original Bey for the tip.
Wow!!!
Lock the BAST
RD up and throw away the key! If you cannot explain where you obtained large amounts of "fundage" from while you are CEO of ANY banking org, then you should not be running said banking institution. I can tell ya one thing, the banks CAN, WILL and DO track everything done.
In his case, he just got caught and should pay the price......PERIOD! Sick and tired of crooked CEO's in ANY industry that exploit their "prestigious" position of power.
MAYBE, he was just "borrowing" the funds in hopes of hitting the jackpot and then giving it back?
I am STILL awaiting the day that NCEL executives get locked up for their lotto scam
Jeffrey Lichtman says "Any actions he committed were done transparently and openly, with full consent of the credit union's board." Really?
So " submitting bogus invoices for dental work and other expenses, purchasing some $3.55 million in New York State lottery tickets, was done transparently and with the consent of the credit union's board? Who are these members that gave Wong the green light to raid the Union funds? Jeff had better name names, other than Wong's.
The wheels of Justice grind slowly. Be prepared for a lengthy trial.
His Lawyer is doing what most defense lawyers do. Now it is up to the District Attorney to fight for the public in court.
I agree, let him rot in jail for stealing the Municipal Credit Union Members hard earned funds.
"Kam Wong has added tremendous value to the credit union and under his stewardship, there have been record profits,"
Its a Credit Union !! Not a bank, it is NOT suppose to make HUGE profits, it is suppose to SAVE the members money by having lower cost loans & accounts.
They should be forced to sell this FAKE CU to a real one in the area, and fire all the board members - FOOLS.
And of course that's my bank in Staten Island ! And of course I've been a member for decades . Throw away the key
It's an official bank along with being a credit union for municipal workers .
While I wont "rush to judgement" - I'm willing to let the Justice system take it's course (Wong has his rights, and he's currently innocent until he's been proven guilty in a court of law) I don't care if it's a bank, or a Credit Union, a thief's a thief. If he's eventually found guilty, then he'll have to face the consequences of his actions. I just hope the consequences of his actions are commensurate with the crime he has allegedly committed. In other words - If he's found guilty, I hope he doesn't get sentenced to a short stay in prison.
What I find most interesting is that he spent millions on lottery tickets but apparently he didn't win a jackpot of any kind. If that statement is correct, it kind of tells ya something, doesn't it???? G5
White collar criminal=Federal country club for his sentence if proven guilty.
Too bad he couldn't spend his possible sentence in Riker's Island!
Irony of the story, if he did spend millions on the lottery he sure has nothing to show for it!
If you're going to steal, steal big and hope you get away with it.
This sounds similiar to when I worked armored car back in early 2000's. Someone from another armored car company back in the 90's I think if I recalled bought a new lavished vehicle, and used the funds from the federal reserve to do it. The person stole $39 million and fled to Mexico before being caught.
It's not worth it at all. I have credit union and the one I have is awesome. The employees are friendly. The banks are bandits.
Oh i totally agree if he did crime go do the time ! Hope it's a forever sentence . But he will say his addiction to gambling put him in this position , he needs help etc etc . The cry bag way put
G5- Wong’s attorney, in not too many words is saying that the Feds have it all wrong, they are on a hunting expedition.l think not.These are serious charges of corruption, that involves other people’s money & investments. I think they are going to stick. Wong is going down.