A former credit union manager from Cumberland who extended risky loans to unqualified customers received a one-year, home-confinement sentence in federal court in Baltimore yesterday.
U.S. District Judge William M. Nickerson sentenced Richard W. Shives, 50, to detention at home with electronic monitoring, to be followed by three years of supervised release, for making false statements to the National Credit Union Administration. Nickerson also ordered Shives to pay restitution of $250,000.
According to his plea agreement, Shives was assistant manager of the City, County State of Allegany County Federal Credit Union in Cumberland, overseeing loans and collections, and supervising the tellers. He had been an employee of the credit union for almost two decades.
To disguise the financial condition of the credit union on delinquent loans to customers, Shives extended the loan due dates and refinanced the loans. Shives also made loans to customers whose previous loans were delinquent and who had inadequate credit history, according to his plea agreement.
Shives caused reports to the National Credit Union Administration to falsely understate the number and amount of outstanding delinquent loans, as well as overstate the credit union's income, prosecutors said in court papers.
For 12 credit union members who received special treatment from Shives, authorities said losses to the credit union exceeded $500,000.