The longtime chief executive officer of the New Haven County Credit Union pleaded guilty Wednesday morning to bank fraud.
In a proceeding before U.S. District Judge Stefan R. Underhill in Bridgeport, James Farrell, 55, of East Haven waived his right to be indicted and pleaded guilty to one count of bank fraud.
According to court documents and statements made in court, Farrell was the CEO of the New Haven County Credit Union (NHCCU) from 1992 until June 2015. From 2010 until 2016, Farrell also provided financial and bookkeeping services to the Rib House, an East Haven restaurant that maintained a business account at NHCCU.
During that period Farrell was primarily responsible for depositing cash sales and paying invoices for the restaurant.
As part of the scheme, when Farrell knew that the Rib House had a financial obligation it could not meet, he transferred funds from the NHCCU general ledger account into the Rib House account, enabling the restaurant to pay its operating costs and other expenses. Between July 2011 and March 2016, Farrell fraudulently transferred $602,908.96 from the NHCCU general ledger account to the Rib House account and, to a lesser extent, for his personal benefit, according to the U.S. Attorney’s office.
Farrell over time repaid $370,278.18 to the NHCCU general ledger account, leaving a shortfall of $232,630.78.
In pleading guilty, Farrell admitted that he defrauded the credit union by transferring funds from the NHCCU’s account to the Rib House account.
Farrell has since paid full restitution to NHCCU.
Underhill scheduled sentencing for Nov. 20, at which time Farrell faces a maximum term of imprisonment of 30 years.
Farrell’s attorney, Joseph W. Martini of the Southport firm of Spears, Manning & Martini, declined to comment on the proceeding.
Farrell is free on bond pending sentencing.
