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FORMER CREDIT UNION DIRECTOR AGREES TO PAY PENALTIES AND RESTITUTION FOR MISAPPLICATION AND MISAPPROPRIATION OF FUNDS

 FORMER CREDIT UNION DIRECTOR AGREES TO PAY PENALTIES AND RESTITUTION FOR MISAPPLICATION AND MISAPPROPRIATION OF FUNDS
 BOSTON, April 8 /PRNewswire/ -- A former credit union official has agreed to pay $15,531.10 in civil penalties and restitution for his misapplication and misappropriation of credit union funds.
 U.S. Attorney Wayne A. Budd announced today that John I. Barr, of 58 Gardiner Road, Quincy, has agreed to settle claims that he misapplied and misappropriated $10,531.10 in funds of the Massachusetts Federal Credit Union during 1989 and 1990.
 As is stated in the Settlement Agreement, Barr, as a director of the credit union, engaged in a scheme whereby, during 1989 and 1990: (i) he caused the credit union to issue checks for first class air travel to B & M Travel Agency, Inc. (B & M) of Lexington; (ii) he in act travelled at coach or other reduced fares; and (iii) he caused B & M to reimburse the difference between the first class and the actual fares to himself individually and not to the credit union.
 Under the Settlement Agreement, Barr has agreed to pay a $5000.00 civil penalty to the United States and to make full restitution to the credit union.
 In the absence of a settlement, the United States intended to bring a civil action against Barr under Section 951 of the Financial Institutions Reform, Recovery, and Enforcement Act of 1989 ("FIRREA"). Congress enacted Section 951 of FIRREA as an additional means of fighting financial institution fraud.
 Under the statute, the government may seek civil penalties as an alternative to, or in addition to, any criminal sanctions for certain enumerated financial institution fraud violations.
 The case was handled by Assistant U.S. Attorney David Abelman of Budd's Civil Bureau.
 -0- 4/8/92
 /CONTACT: Press Officer at the U.S. Attorney's Office, 617-223-9445/ CO: ST: Massachusetts IN: SU:


EG -- NE018 -- 6420 04/08/92 16:29 EDT
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Publication:PR Newswire
Date:Apr 8, 1992
Words:318
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