Former Scranton, Pa.-based CEO SeanJelen pleaded guilty to bankfraud and attempted bank fraud before U.S. Magistrate JudgeKaroline Mehalchick in Scranton, according to a July 14 press release from theU.S. Attorney's Office.
Jelen admitted to executing the scheme to defraud the creditunion of about $718,000, some of which went to pay for his personal expenses.He also admitted to rigging elections held for the Valor board and attemptingto obtain an additional amount of about $1.1 million through a forged severancecontract that would be triggered by his termination.
The release said that the information seeks forfeiture ofproperty obtained as a result of the fraud, including a residence located inNew York.
Mehalchick allowed Jelen to remain on pretrial release,subject to travel restrictions and the surrender of his passport. Whenscheduled, U.S. District Court Judge Richard Conaboy will sentence Jelen. Themaximum penalty under federal law for the charges is imprisonment of 60 years,a term of supervised release following imprisonment, and a fine.