Former Valor FCU CEO Sean Jelen was sentenced to 70 months' imprisonment and four years of supervised release for bank fraud and attempted bank fraud offenses.
U.S. District Court Judge Malachy Mannion also ordered Jelen to pay $694,971.88 in restitution to the victims of his crimes.
In July 2016, Jelen pleaded guilty to defrauding and attempting to defraud the Scranton, Pa.-based credit union and several insurance companies, both before and after his tenure as CEO.
According to a press release from the Justice Department, Jelen's criminal activities included obtaining a $450,000 line of credit from Valor FCU by using altered bank records to conceal his existing mortgage liability, embezzling almost $140,000 from the credit union by causing it to double-pay his life insurance premium directly to his own bank account, and providing false documents to the National Credit Union Administration to deflect its investigation of his activities.
The U.S. is seeking forfeiture of a vacation home in Breezy Point, N.Y., that Jelen bought with the proceeds of his frauds.
Valor FCU has been absorbed by Pentagon FCU.
