SAGINAW, MI – Michigan Attorney General Bill Schuette today announced he has filed 13 felony charges against former Saginaw-area credit union CEO Stanley Hayes, 45-years-old, of Saginaw, for allegedly stealing over $710,000 from Valley State Credit Union where he worked.
Hayes is charged with conducting a Continuing Criminal Enterprise, two counts of Embezzlement Over $20,000, seven counts of Embezzlement Over $1,000, and three counts of Using a Computer to Commit a Crime.
“Executives are given their position in good faith,” said Schuette. “Mr. Hayes’ alleged actions not only shattered this trust, but hurt hard working people in the process. When it comes to white collar crime, mark my word: justice will be served for Michigan victims.”
Hayes was arraigned Friday, June 9, 2017 before the Honorary Manvel Trice in 70th District Court. His bond was set at $25,000 cash or surety. The preliminary exam conference is set for June 21, 2017 and the preliminary examination for June 26, 2017.
“Hayes’ alleged actions were illegal and unacceptable,” said DIFS Director Patrick McPharlin. “The staff of the Department of Insurance and Financial Services, together with the Department of Attorney General, did an outstanding job of uncovering these actions on behalf of Michigan consumers.”
Stanley Hayes was Chief Executive Officer of Valley State Credit Union (VSCU) from 2005 until his termination in 2016. During this time, he allegedly used money embezzled from the bank to pay for his insurance, property taxes, travel and other personal expenses. Credit union funds were also used to allegedly conceal the financial difficulties the credit union was facing. In order to make the financial position of VSCU appear better than it was to auditors, Hayes allegedly used embezzled funds to pay defaulted loans and even pay on loans held by dead persons.
Most of the embezzlements were allegedly done electronically, but nearly $200,000 cash was taken from Hayes’ teller drawer over time. He allegedly used the system to pay his taxes, car insurance and other non-credit union expenses.
The alleged embezzlement was discovered after an investigation by the Michigan Department of Insurance and Financial Services (DIFS) found several financial irregularities, including overly high risk in its loan portfolio, lack of internal controls, inaccurate reporting and failure of management and the Board of Directors to address these problems. In 2016, following that investigation, Valley State was then ordered into a conservatorship where DIFS was directly responsible for the management of the credit union and Hayes was terminated.