The Borinquen Federal Credit Union (BFCU) in Philadelphia, Pennsylvania, was forced to shut down after it was discovered that its former manager had developed a scheme to embezzle more than $2.3 million from the business.
According to the Philadelphia Inquirer, after an accounts payable audit was conducted and the credit union's financial records were thoroughly investigated, Ignacio Morales was terminated from his position and the National Credit Union Association took over control of the company. However, the credit union was eventually closed due to the financial impact from the theft. Investigators say Morales participated in a variety of illegal activities to steal money from BFCU, including creating false records and reports to cover his tracks of stealing from the business' accounts.
Morales took more than $600,000 from BFCU and used the stolen funds to purchase real estate, writes the Philadelphia Business Journal. He stole another $700,000 from a member of the credit union by promising to deposit the amount into the individual's account but instead using the money to pay for personal expenses. Morales also tried to buy 15 kilograms of cocaine, worth $560,000, using money stolen from the company.