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Suit alleges misappropriation of funds held by credit union

By Molly English-Bowers | Apr 5, 2016

BELLEVILLE – A group of seven individuals and companies are suing over alleged misappropriation of their money at the hands of an agent of a credit union. Consumer fraud and negligence are among the counts.

Gary Pierce, Trio Properties & Management LLC, Marty Hubbard, Integrated Construction Resources LLC, Amani Investments LLC, Deryl Brown and Mid City Development LLC filed the suit March 22 in St. Clair County Circuit Court against Scott Credit Union and Theodore Longust.

From Nov. 7, 2005 to Dec. 8, 2014, defendant Longust worked at defendant credit union as a Business Relationship Manager, the suit says. While he was required to adhere to strict guidelines, the suit alleges that Longust defrauded through the embezzlement of credit union funds, the creation of fraudulent loans, the payment of loans through application of funds from other loans, the increase of credit limits on loans that did not have board approval, and the issuance of business loans without required documentation.

According to the complaint, the defendants knowingly removed currency from the plaintiffs' accounts without authorization, opened unauthorized lines of credit in plaintiffs' names, denied plaintiffs access to their accounts, and withheld plaintiffs' funds, among other practices.

The plaintiffs seek judgment on all five counts against both defendants 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-162

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