BELLE VERNON, Pa. (11/15/11)--CUMIS Insurance Society Inc. of Madison, Wis., has filed a lawsuit against a Pennsylvania man for allegedly using a credit union's credit cards and money to make personal purchases.
The suit was filed in U.S. District Court in Pittsburgh against Gerald W. Jackson, 51, for actions while serving as CEO of BVA FCU in Belle Vernon, Pa. (Pittsburgh Tribune-Review Nov. 14).
Jackson allegedly made $67,493 in purchases using BVA's corporate credit card, and also used BVA's Lowe's card to make $36,425 in purchases, including five $500 gift cards, the lawsuit alleges.
CUMIS also alleges Jackson used credit union funds to pay for labor done at his personal residence, to buy construction materials and equipment for another business, to rent a boat for personal use, and to pay dues at a country club for himself and an acquaintance.
In the four-count lawsuit filing, CUMIS alleges fraud, breach of fiduciary duty, conversion and unjust enrichment. BVA FCU saw losses totaling $261,436. CUMIS is seeking $223,436 plus fees and expenses.
CUMIS recently has sued several individuals who have caused losses to credit unions that it insured.
CUMIS is a property and casualty insurance company that provides fidelity insurance solutions to credit unions in the U.S. It offers credit unions packages of protection, business auto, and workers' compensation liability programs.