The former CEO of a Connecticut credit union will avoid much time in prison after being sentenced for defrauding the New Haven County Credit Union out of hundreds of thousands of dollars.
James Farrell, 55, of East Haven, was sentenced this week to one day in prison, time already served, and two years of supervised release, after pleading guilty to one count of bank fraud. He was also ordered to serve 50 hours of community service.
U.S. Attorney John Durham said that Farrell, the former CEO of the New Haven County Credit Union (NHCCU) between 1992 and 2015, also provided financial and bookkeeping services to The Rib House, a restaurant in East Haven. The Rib House maintained a business account at NHCCU, and Farrell was responsible for depositing cash sales and paying invoices for the restaurant.
In pleading guilty, Durham said that Farrell admitted that he defrauded NHCCU by transferring funds from NHCCU’s general ledger account to the account held by The Rib House.
As part of the scheme, when Farrell knew that The Rib House had a financial obligation it could not meet, he transferred funds from the NHCCU general ledger account into The Rib House account, which allowed The Rib House to pay its operating costs, including taxes, food, liquor and other operating expenses.
Between July 2011 and March 2016, Farrell fraudulently transferred $602,908.96 from the NHCCU general ledger account primarily to The Rib House account and, to his personal benefit. Over time, Farrell replenished $370,278.18 to the NHCCU general ledger account, leaving a shortfall of $232,630.78.
Farrell has since paid full restitution to NHCCU, and pleaded guilty to bank fraud in August.
Click here to sign up for Daily Voice's free daily emails and news alerts.