Mother, Son Plead Guilty in 14-Million Credit Union Theft

8/21/2012 (Updated 11:23:56 PM)

BINGHAMTON -- Scott Lonzinski, 32 and his mother Laura Conarton, 46, plead guilty this morning to defrauding the Broome County Teacher's Federal Credit Union of over $14 million.

The US Attorney for the Northern District of New York said that it is one of the largest schemes ever prosecuted in his jurisdiction.

"These kinds of cases cause great financial hardship to individuals.  This is a serious matter and a priority for federal law enforcement."

The duo's fraud began in July of 2009 and lasted until February 2011. They made phony documents to secure ten commercial loans.  Lonzinski used the loan money to finance his construction business, remodel his home, and buy cars for himself and family members.  The government has repossessed over $6 million in assets, but that only covers 43% of the stolen money.

"It should serve as a message to people who engage in financial fraud that we are here to stay, we are going to fare it out, uncover it, and prosecute it vigorously."

The fraudulent scheme was uncovered during an examination by the National Credit Union Administration.  The agency assumed responsibility for the day- to-day operations of the credit union.  The
assets of BCT were eventually sold to Visions Federal Credit Union.  No members lost money as a result.  The FBI explains what to do in the case of suspected financial fraud.

"If something seems too good to be true, it probably is.  I encourage anyone to contact the FBI if they become aware of any significant fraud or any other white collar crime."

Lozinski will be sentenced December 19 and Conarton on December 20.

In Binghamton, Samantha McDonald, Fox 40 News.