(Indianapolis) – A former credit union executive from eastern Indiana will spend two years in federal prison after admitting to a fraudulent loan scheme that prosecutors say abused his position of trust to fund personal expenses, including the purchase of a home.
Daniel Johnson, 37, of Centerville, was sentenced Wednesday to 24 months in prison by U.S. District Judge Richard L. Young. The sentence also includes two years of supervised release and an order to pay $285,855.66 in restitution.
According to court records, Johnson exploited his role as chief executive officer and manager of Richmond City Employees Federal Credit Union in late 2021 by securing two $150,000 loans through false pretenses. While credit union policy allowed executives to apply for loans, approval from the institution’s board of directors was required.
Prosecutors said Johnson submitted applications claiming the loans were intended to purchase recreational vehicles and falsely stated the board had approved them. No such meetings or votes occurred. In one instance, Johnson also forged his wife’s signature to make the loan appear to be a joint application.
Authorities said Johnson never intended to buy recreational vehicles. Instead, the funds were used to pay off personal loans, student debt, and to purchase a residence. Because no vehicles were ever purchased, there was no collateral, leaving the credit union with $300,000 in unsecured losses.
The Richmond City Employees Federal Credit Union, which served local public employees, later merged into Kemba Credit Union in April 2023.
Federal officials said the case underscores the damage caused when insiders misuse financial institutions. U.S. Attorney Tom Wheeler said Johnson was entrusted with safeguarding the earnings of city workers but instead “abused this trust and lined his own pockets.”
The investigation was led by the Federal Bureau of Investigation, whose Indianapolis office said the sentence sends a clear message that financial crimes committed from within an institution will be aggressively pursued.
