Theodore J. Longust, Credit Union Fraud, IL 2023

Illinois – Theodore J. Longust, the former Business Relationship Manager of Scott Credit Union, has been sentenced to a staggering 121 months in prison for his role in a $25.8 million fraud scheme.

The 51-year-old Columbia native was convicted on nine counts, including financial institution fraud, misapplication of funds, money laundering, and making a false record with intent to deceive.

Longust’s fraudulent activities spanned nearly a decade, from November 7, 2005, to December 8, 2014. He executed a complex scheme involving the embezzlement of credit union funds, creating fraudulent loans, and manipulating loan balances and amounts. The investigation revealed that Longust also increased credit limits without proper board approval and issued business loans without required documentation or security.

According to court documents, Longust’s false report for the 3rd quarter of 2014 misstated loan balances by over $12 million and underreported loans. His actions resulted in a total loss of approximately $25.8 million to Scott Credit Union, with criminal direct losses totaling $13,719,947.21.

The court ordered Longust to pay restitution of $5,012,362.52 to Scott Credit Union and $9,114,560.69 to CUMIS Mutual, the bonding company for Scott Credit Union. Despite his criminal conduct, the safety and soundness of Scott Credit Union were not adversely affected.

The successful prosecution was a result of an investigation by the Federal Bureau of Investigation (FBI) and the Internal Revenue Service/Criminal Investigation, with assistance from Scott Credit Union. Assistant United States Attorney Norman R. Smith handled the prosecution.