A former CEO who is serving a three-year prison sentence for bank fraud was ordered by a federal judge last month to pay restitution of more than $500,000.
Charles Juska, former president/CEO of the $22.3 million Tazewell County School Employees Credit Union in Pekin, Ill., was sentenced in December.
But the restitution order was set aside by U.S. District Chief Judge James E. Shadid in Peoria, Ill., because of legal issues between Juska’s lawyer and federal prosecutors over the total restitution amount.
After hearing legal arguments, Judge Shadid agreed with prosecutors and ordered Juska on June 30 to pay restitution in the amount of $595,744.
Juska began serving his sentence in April.
In May 2016, after a four-day trial and four hours of deliberation, a federal jury found Juska guilty of 11 felony counts of bank fraud, making false entries and misapplying credit union funds. However, the jury also found the former CEO not guilty on seven felony counts of bank fraud, making false entries and misapplying credit union funds.
Federal prosecutors said Juska executed a loan scheme that benefitted members with bad credit and falsely minimized the institution’s loan delinquencies. Juska forged members’ signatures, created numerous fraudulent loans, shifted money between accounts and falsified the books to conceal his fraud over five years.
Juska’s lawyer argued, however, that his client did not profit from his conduct and wanted to help credit union members who fell on hard times.
