Credit union complicit in consumer fraud, four plaintiffs claim
BELLEVILLE – Four limited liability corporations are suing over the alleged embezzlement of money from their credit union accounts. The counts range from consumer fraud to negligent hiring.
TM Partnership LLC, Schill Investment Fund LLC, Allpro Development LLC, and P2 Commercial LLC filed the suit March 31 in St. Clair County Circuit Court against Scott Credit Union and Theodore Longust.
Defendant Longust worked as business relationship manager at defendant credit union for nearly nine years, the suit says. Despite his legal obligations and the credit union’s policies and procedures, the suit alleges he created fraudulent loans, increased credit limits on loans that did not have the requisite board approval, and issued loans and letters of credit without the required documentation and security.
There are five counts against the two defendants. The plaintiffs seek judgment in their favor for each count in an amount in excess of $50,000 to compensate them for their damages plus court costs. They are represented by Grey Chatham Jr. of Chatham & Baricevic in Belleville.
St. Clair County Circuit Court case number 16-L-186