Belle Vernon man accused of personal use of funds
A Fayette County man is accused in a federal civil lawsuit of using his position as manager of a Belle Vernon credit union to fraudulently obtain at least $223,436 worth of goods and services.
Cumis Insurance Society Inc. of Madison, Wis., filed the lawsuit in U.S. District Court in Pittsburgh against Gerald W. Jackson, 51, of Belle Vernon.
In the filing, Cumis alleges that Jackson, while serving as manager of BVA Federal Credit Union in Belle Vernon, used the bank's credit cards and money to make various personal purchases.
According to the lawsuit, Jackson used BVA's corporate credit card to make $67,493 in purchases. In addition, he allegedly used BVA's Lowe's card to make $36,425 in purchases, including five $500 gift cards.
Cumis alleges Jackson used BVA funds to pay $42,603 for labor performed at his personal residence, $14,025 to buy construction materials and equipment, $5,040 for Gateway Clipper cruises, $7,718 for a boat for his personal use, $3,600 to pay his dues at Mon Valley Country Club and $8,500 to himself and an acquaintance, Rachel Wilson.
Other alleged unauthorized expenditures include $18,732 in checks issued to himself "and other entities on his behalf which had no apparent BVA purpose, $3,500 in checks to Lowe's and an $800 political contribution."
Jackson could not be reached for comment Sunday night.
According to the lawsuit, Jackson was employed as manager of the credit union from January 2009 to January 2010. He was placed on paid administrative leave on Nov. 24, 2010, according to the lawsuit, after a National Credit Union examiner discovered discrepancies during a routine inspection.
Previously, Jackson was on BVA's board of directors and provided "some management services" after the previous manager was "dismissed in the fall of 2008."
In the four-count filing, Cumis is alleging fraud, breach of fiduciary duty, conversion and unjust enrichment. Cumis indicates BVA suffered losses of $261,436, but it is seeking to recover only $223,436, plus fees and expenses.