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MCU CEO Kam Wong Gets 5½ Years for $9.9M Fraud
NEW YORK, NY – Kam Wong, the former chief executive officer of New York’s Municipal Credit Union (MCU), is headed to federal prison after being sentenced to 66 months for a brazen, years-long scheme to steal nearly $10 million from the credit union’s members. U.S. Attorney Geoffrey S. Berman announced the sentence today in Manhattan federal court, marking a significant victory in a case that exposed deep-seated corruption at the heart of the city’s oldest credit union.
Wong, who served as CEO and president of MCU from 2007 until his arrest in May 2018, systematically siphoned funds for personal gain while publicly touting the values of the non-profit financial institution. The scheme involved a complex web of fraudulent invoices, sham reimbursements, and outright embezzlement. Wong pleaded guilty to embezzlement from a federally insured credit union before U.S. District Judge John G. Koeltl, who handed down the 66-month sentence.
The extent of Wong’s greed is staggering. He submitted false invoices for dental work never performed, pocketing hundreds of thousands of dollars. He fraudulently secured millions in payments disguised as long-term disability insurance and tax reimbursements. Beyond that, Wong used MCU funds to fuel a lavish lifestyle: a Mercedes-Benz, multiple leased luxury vehicles, high-end electronics, expensive meals, and even educational and housing expenses for the relatives of friends he hired at the credit union. He also funneled hundreds of thousands of dollars to a former MCU Supervisory Committee member’s company in a clear violation of conflict of interest policies.
“For years, Kam Wong, the then-CEO of New York’s oldest credit union, betrayed the credit union’s hard-working members from the perch of his executive suite by siphoning off millions of dollars in company money for his personal benefit,” Berman stated. “Wong then tried to cover up what he had done by making false statements to federal investigators and creating false and misleading documents. He will now serve a substantial prison sentence for his crime.”
MCU, serving over 588,000 members including municipal, state, and federal workers, is federally insured by the National Credit Union Administration (NCUA). The credit union’s earnings are meant to benefit its members through favorable rates and reduced fees. Instead, Wong treated it like his personal piggy bank. The ongoing investigation, spearheaded by the Special Agents of the U.S. Attorney’s Office and their law enforcement partners, continues to unravel the full scope of the fraud and hold others accountable.
This case serves as a stark reminder that even those in positions of trust are not above the law. Wong’s betrayal of MCU members will now be paid for with over five years of his life. The Grimy Times will continue to follow this case and report on any further developments.
Key Facts
- State: New York
- Agency: DOJ USAO
- Category: White Collar Crime
- Source: Official Source ↗
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