TALLAHASSEE, Fla. (WTXL) — A former lending director of FSU Credit Union will spend five and half years in federal prison after stealing more than $800,000 from the company over the course of two years.
Kevin Robert Lee, 35, of Tallahassee, was sentenced Wednesday to 66 months (five and a half years) in federal prison after he pleaded guilty to 20 counts of bank fraud, aggravated identity theft, and theft from a lending institution, as well as three counts of filing a false tax return.
His sentence will be followed by five years supervised release. Lee was also ordered to pay $979,839.49 in restitution to the FSUCU, its insurance company, and to the IRS. Additionally, Lee was also ordered to pay $11,589.48 in prosecution costs to the IRS.
The crimes involved more than $800,000 in theft.
The indictment alleges that Lee was the lending director of FSU Credit Union (FSUCU), a Tallahassee-based credit union, a position that allowed him to open new customer accounts and approve lines of credit.
In 2014, Lee used the name, date of birth, and social security number of the President of Tallahassee Chapter of Credit Unions (TCCU) to create a second fraudulent account for that organization.
Lee used the original TCCU account for fraudulent activity while leaving the new account for legitimate TCCU transactions. Lee also created two accounts using the names, dates of birth, and social security numbers of his college roommates and used them as “intermediary accounts” to deposit funds stolen from FSUCU customers.
He also used the stolen funds to pay off personal credit cards, make mortgage and car payments, and pay for his children’s private school tuition.
In total, Lee allegedly obtained or attempted to obtain more than $800,000. Lee also allegedly submitted false tax returns for the 2015-2017 calendar years.
A former lending director of FSU Credit Union has been indicted by a grand jury after being accused of stealing more than $800,000 and filing false tax returns for two years.
Kevin Lee, 35, of Tallahassee, was arraigned on Friday in the U.S. District Court in Tallahassee after a federal grand jury returned an indictment charging him with twenty counts of bank fraud, aggravated identity theft, theft from a lending institution, and three counts of filing a false tax return.
The indictment alleges that Lee was the lending director of FSU Credit Union (FSUCU), a Tallahassee-based credit union, a position that allowed him to open new customer accounts and approve lines of credit. It also alleges that Lee served as treasurer of the Tallahassee Chapter of Credit Unions (TCCU), a non-profit organization that advocates pro-credit union legislation.
According to the indictment, between June 2014 and November 2017, Lee fraudulently opened customer accounts at FSUCU using the names, dates of birth, and social security numbers of three individuals without their consent or knowledge, and in doing so, Lee forged their signatures and fraudulently opened lines of credit for those accounts.
Lee is alleged to have made unauthorized withdrawals and transfers of funds from the accounts of approximately 20 FSUCU customers, which were deposited into three fraudulently opened accounts. The indictment also says that Lee used the embezzled funds and fraudulently obtained loan proceeds to pay his personal creditors (such as for his home mortgage and credit cards) and to hide his embezzlement.
In total, Lee allegedly obtained or attempted to obtain more than $800,000. Lee also allegedly submitted false tax returns for the 2015-2017 calendar years.
The maximum penalty for bank fraud is 30 years in prison. Lee faces a 2-year mandatory minimum prison sentence for aggravated identity theft. The trial is scheduled for April 15, 2019, at 8:15 a.m. at the United States Courthouse in Tallahassee.
This case resulted from an investigation by the Florida Department of Law Enforcement and the Internal Revenue Service – Criminal Investigation, after being alerted by FSU Credit Union.
