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Ex-New Haven County CU CEO pleads guilty to bank fraud

Former New Haven County CU CEO James Farrell waived his right to be indicted and pleaded guilty to one count of bank fraud before U.S. District Judge Stefan Underhill on Aug. 28.

Farrell was the credit union's CEO from about 1992 to June 2015. Its board then retained him to assist the new CEO until March 2016. From 2010 until 2016, Farrell also provided financial and bookkeeping services to The Rib House, a restaurant that maintained a business account at the credit union.

According to a news release from the Department of Justice, Farrell transferred funds from the credit union's general ledger account into The Rib House's account when he knew that the restaurant had a financial obligation it could not meet.

Of the amount fraudulently transferred, Farrell replenished $370,278.18 to the credit union's general ledger account over time, leaving a shortfall of $232,630.78.

Sentencing is scheduled for Nov. 20, at which time Farrell faces a maximum term of imprisonment of 30 years.

Farrell, who has paid full restitution to the Connecticut-based credit union, is released on bond pending sentencing.