Louis O'Neill

NEW YORK COUNTY, 18 June 2003 - Manhattan District Attorney Robert M. Morgenthau, joined by New York City Police Commissioner Raymond Kelly and New York City Department of Investigation Commissioner (DOI) Rose Gill Hearn, announced the arrests of 74 people for stealing money from the Municipal Credit Union (MCU) in the wake of the attacks on the World Trade Center. Forty-four people are still being sought for arrest. Of the total of 118 people who have either been arrested or are being sought, 27 are employees of New York City. The investigation is continuing into as many as 4,187 members of the Municipal Credit Union and the theft of $15 million.

Each of the defendants is charged with stealing more than $5,000 from MCU by using their ATM cards to withdraw funds in the weeks following the WTC attacks far in excess of their account balances. The defendants arrested today, as well as those who are still being sought, are all individuals who overdrew their accounts by more than $5,000 and who have made no effort to repay the money. The defendants have been charged with Grand Larceny in the Third Degree. The total amount stolen by these defendants is $730,518.68.

MCU, whose membership is open to, among others, employees of the city, state and federal governments and employees in the health care industry, was located at 22 Cortlandt Street, near where the World Trade Center towers stood. As a result of the collapse of the towers, MCU's own ATM machines were disabled and MCU intermittently lost its computer link to the New York Cash Exchange (NYCE) network which administers bank-to-bank transactions and processes ATM transactions, including withdrawals. When the link to the NYCE network was interrupted, NYCE had no ability to access MCU account balances to ensure that there were sufficient funds to cover a withdrawal when a member withdrew cash using his MCU-issued ATM card or used it as a Visa credit card (the MCU cash accounts linked to these ATM cards did not have overdraft protection). Upon learning this, MCU made a determination not to shut down its entire ATM operation because of the hardship it might impose on members, particularly those adversely affected by the tragedy, but rather to allow NYCE to continue to dispense cash to MCU account holders.

Those arrested or sought today took advantage of the situation by withdrawing at least $5,000 more than their account balances in the weeks after the attacks. For example:

· JAMAL HARRIS, an employee at the New York City Department of Finance: HARRIS's highest balance in the months preceding the 9/11 attacks was $7.33. From September 13 - October 31, 2001, the defendant made nine $100 withdrawals, one $180 withdrawal and twenty-four withdrawals of $200, for a total of $5,899.

· REGINA WOODEN, a Planned Parenthood employee: The defendant, whose balance at the MCU prior to 9/11 never exceeded $500, is charged with making twenty five cash withdrawals, bringing the amount stolen to $5,149.28

· DARLENE BARBOUR, a New York Police Department traffic agent: The defendant is charged with making one $100 withdrawal, one $200 withdrawal, one $300 withdrawal quickly followed by 5 withdrawals of $400 each and five withdrawals of $500, all between October 1 and October 31, 2001. The defendant is charged with stealing $5,094.59

· ROSALYN STEVENSEN, a former employee of the United States Postal Service: The defendant, who is currently unemployed, is charged with stealing $6,306.05 from the MCU. The defendant, whose balance prior to 9/11 did not exceed $20.00, made thirty-one $100 cash withdrawals, eight $200 withdrawals, two $500 withdrawals and one $300 withdrawal.

· A Patient Care Inc. employee who is still being sought: This individual will be charged with stealing $7,715.45 from MCU in cash withdrawals and VISA purchases, including items purchased at Trimlife, MCI, Sexy Creations, Gamelink, 1-800 Flowers, Victoria's Secret and J.C. Penney's.

· GIGI LOFTON, an E-Z Pass employee: This defendant, whose balance before 9/11 was $111.00 is charged with stealing $7,353.82 from the MCU in cash withdrawals and almost seventy VISA purchases, including items purchased at Lane Bryant, Sam Goody, the Gap, Old Navy, Blockbuster Video, Modell's and Hot Spot.

· A Department of Sanitation employee who is still being sought: This individual will charged with stealing $7,336.50 from the MCU. Even though her balance before 9/11 was $24.50, the defendant made two $100 cash withdrawals, sixteen $200 withdrawals and eight $500 withdrawals from September 22-October 31, 2001.

· JASON BURRELL, a New York City Department of Health employee: The defendant is charged with stealing $6,096.75 from the MCU in 38 cash withdrawals, ranging from $30 to $500.

· LOUISE DAVIS, an employee at the New York City Department of Correction: DAVIS is charged with making twenty-one $200 withdrawals, eleven $100 withdrawals, one $60 withdrawal and one $40 withdrawal, for a total of $5044.75

· MICHAEL BATTLE, a New York City Human Resources Administration (HRA) employee: The defendant is charged with stealing $5,655.00 from the MCU in nineteen cash withdrawals from October 5 - October 31, 2001.

· ADDIE MOSES, another HRA employee: The defendant made 59 cash withdrawals from MCU totaling $7,499.75 between September 26th and October 31st even though she only had $117.50 in her account.

Today's actions are part of a continuing investigation by law enforcement into thefts from the Municipal Credit Union. Last August, 93 people were charged and arrested (eight other people are still being sought). Of those 93 arrests, there have been 86 guilty pleas or trial convictions; four cases are pending and three cases were dismissed. To date, as a result of the August arrests, approximately $600,000 in restitution has been ordered. The defendants charged last August each stole in excess of $7,500 and made no effort to pay any of the money back.

The investigation began when officials of MCU notified DOI and the Police Department of the problem. Both launched investigations, which were shortly thereafter referred to the District Attorney's Office. As a result, a joint investigation was undertaken by DOI, the NYPD's Internal Affairs Bureau, the District Attorney's Squad of the Police Department and the Special Prosecutions Bureau of the District Attorney's Office.

In November 2001, MCU mailed notices to all of the individuals who had overdrawn their accounts, listing the amount overdrawn and demanding repayment immediately. Then, MCU engaged the services of a collection agency that contacted, or attempted to contact, the individuals. Those individuals who responded to either the letter from MCU or to the actions of the collection agency were offered the opportunity to convert their negative account balances to loans with a defined repayment schedule. Those arrested or sought today made no effort to repay despite these notifications.

More than 540 MCU members (including those arrested today or previously, or being sought today) made ATM withdrawals that exceeded their account balances by at least $5,000 in the weeks after 9/11; more than 1,700 overdrew their accounts by at least $3,000; and more than 4000 overdrew their accounts by at least $1,000. Although some have repaid all, or a substantial amount, of the money, a large number have made little or no repayments. The investigation into those individuals is continuing.

For their part in the investigation leading to today's arrests, Mr. Morgenthau thanked the New York City Department of Investigation: specifically Vincent Green, Assistant Commissioner of Financial Fraud, Marquita Allen-Howard, Deputy Inspector General, and Joseph Medina, Chief Investigator; Municipal Credit Union, President/Chief Executive Officer William Porter; New York Police Department: Chief of Detectives George Brown, District Attorney's Squad Captain Sean Crowley and Det. Craig Taylor, and Fugitive Enforcement Division Deputy Inspector Raymond Ferrari; United States Department of Housing and Urban Development: Special Agent-in-Charge New York/New Jersey Ruth Ritzema and Special Agent Michael Granatstein.

Within the District Attorney's Office, the cases have been investigated by Assistant District Attorney Brenda Fischer who coordinated the work for the District Attorney's Office under the supervision of Special Prosecutions Bureau Chief Leroy Frazer. The cases will be prosecuted by assistant district attorneys assigned to the Special Prosecutions Bureau.

The defendants have been charged with Grand Larceny in the Third Degree, a class D felony which is punishable by up to seven years in prison.