Former Credit Union CEO Permanently Banned by NCUA for Loan Fraud Exceeding $600,000

Sentenced to Two Years and $285,000 in Restitution

–

Alexandria, VA – March 31, 2026 – The National Credit Union Administration (NCUA) announced Tuesday that a former CEO and an ex-member service representative, who together stole more than $600,000 from credit unions in Indiana and Texas, have been permanently prohibited from working at any federally insured financial institution.

Daniel Johnson, former president and CEO of the $6.3 million Richmond City Employees Federal Credit Union in Richmond, Indiana, was sentenced in December to 24 months in federal prison for lying on loan applications to obtain nearly $300,000 in fraudulent loans, according to the U.S. Attorney’s Office for the Southern District of Indiana. He was also ordered to pay $285,855 in restitution and serve two years of supervised release after his prison term.

Johnson, 37, of Centerville, Indiana, pleaded guilty to two counts of bank fraud. Court documents show that in August and September 2021, he submitted two fraudulent applications for $150,000 secured loans each, claiming the funds were for purchasing recreational vehicles. In reality, he had no intention of buying the vehicles and used the proceeds for personal expenses, including paying off prior loans (approximately $65,698), settling student loans and other debts, and purchasing a home.

To conceal the scheme, he falsely claimed board approval for the loans—when none had been granted—and forged his then-wife’s signature on the second application, effectively turning the loans into unsecured ones. The credit union, whose members were primarily city employees, suffered losses of about $285,855.66.

U.S. Attorney Tom Wheeler criticized Johnson’s actions, stating: “As the Chief Executive Officer, Johnson was tasked with protecting money earned by hardworking public servants for the City of Richmond. Instead, Johnson chose to abuse this trust and line his own pockets through dishonesty.”

FBI Indianapolis Special Agent in Charge Timothy J. O’Malley added that the sentence underscores the agency’s commitment to holding accountable those who exploit financial institutions.

The NCUA’s prohibition, issued as part of its industry bans for individuals convicted of crimes involving dishonesty or breach of trust, applies to both Johnson and the unnamed former member service representative involved in the separate Texas case. The bans prevent them from ever again participating in the affairs of any federally insured credit union.

Richmond City Employees Federal Credit Union merged into Kemba Credit Union of West Chester, Ohio, effective April 1, 2023. This case highlights ongoing regulatory efforts to safeguard credit union members’ funds and maintain trust in the industry by permanently barring those who misuse their positions for personal gain.