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Account holders claim fraud in Scott Credit Union's handling of their money

By Molly English-Bowers | Apr 4, 2016

BELLEVILLE – Two commercial account holders are claiming a credit union and one of its employees defrauded them.

Waveseer Holding LLC of Illinois and Gateway Capitol Group LLC of Missouri filed suit March 22 in St. Clair County Circuit Court against Scott Credit Union and Theodore Longust.

From Nov. 7, 2005, to Dec. 8, 2014, Longust worked at Scott Credit Union with the title Business Relationship Manager, the suit says. However, the plaintiff alleges Longust lacked the qualifications for his position. Even though Longust was required to adhere to strict guidelines when issuing a letter of credit, the suit alleges he schemed to defraud.

Waveseer Holding accuses Longust of embezzlement of credit union funds, the creation of fraudulent loans, the payment of loans through the misapplication of funds from other loans and increasing credit limits on loans without requisite board approval, among other allegations.

For each of the five counts against the two defendants, the plaintiffs seek judgment in excess of $50,000. They are represented by Grey Chatham Jr. of Chatham & Baricevic in Belleville.

St. Clair County Circuit Court case number 16-L-163

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