Cumis Insurance says former employee embezzled

By Chris Dickerson | Oct 18, 2012

HUNTINGTON – Cumis Insurance Society is suing a former employee it claims misappropriated more than $8,000.

Rhonda Sullivan was employed by Huntingtonized Federal Credit Union for approximately 15 years, with the majority of the time spent as a collections officer, until her termination in January 2009, according to a complaint filed Oct. 9 in Cabell Circuit Court.

Cumis claims during Sullivan’s employment, she embezzled funds from the credit union by accepting unapplied loan funds, misappropriating loan disbursements and misappropriating funds from repossession sales.

After Sullivan’s termination, three credit union members came forward to dispute their loan balances, according to the suit, and, in each case, the balances of the loans in question had been previously charged off, but the members continued to make cash payments directly to Sullivan, for which she provided handwritten receipts.

Cumis claims the cash payments were not applied to the accounts and no journal entry reflecting these payments could be identified in the allowance for loan loss general ledger account.

As a result of these actions, each of the loans required an adjusting entry to account for the undocumented payments totaling $3,262.32, according to the suit.

Cumis claims Sullivan also misappropriated the automobile loan disbursement of a member by crediting the member’s share account with $25,000 and noting a $2,000 cash withdrawal, however, the member disputed the cash disbursement and no supporting documentation was found, requiring a $2,000 adjustment to the loan.

Sullivan also misappropriated funds from the sale of a repossessed vehicle, and upon the sale of the vehicle to a member of the credit union, Sullivan applied the purchase price to the previous loan and retained $3,000 in funds for her own use, according to the suit.

Cumis claims Sullivan knowingly received the benefit and use of the credit union’s funds in the amount of $8,262.32.

Sullivan was unjustly enriched in the amount in excess of $8,262.32 at the expense of the credit union and received funds which she had a duty in equity and in good conscience to repay, according to the suit.

Cumis is seeking judgment in the amount of $8,262.32. It is being represented by Benje A. Selan.

The case has been assigned to Circuit Judge David M. Pancake.

Cabell Circuit Court case number: 12-C-671

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