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Illinois man admits defrauding credit union

Published: Tuesday, July 1, 2014 12:11 p.m. CDT

EAST ST. LOUIS — A former southwestern Illinois man faces up to 30 years in federal prison now that he has admitted bilking the credit union where he once served as president.

Fifty-four-year-old Paul C. Smith of East Alton pleaded guilty Monday in U.S. District Court in East St. Louis to bank fraud.

Authorities say Smith was employed by Laclede Community Credit Union from November 1977 until his resignation in mid-2012. He had been the credit union's president and was treasurer for a credit union trade group.

Prosecutors say Smith used his association debit card to get cash advances and make purchases totaling more than $58,000 from 2007 to 2012, then manipulated the bank's computers to conceal those transactions.

Smith is expected to be sentenced Sept. 29.

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