GMT, based in Norcross, Ga., now has a client list of more than 150, and AEFCU
joins Elevations CU in Colorado and New Mexico Educators FCU as credit union users, the company said.
But instead of investing it directly with Emlyn Mousley, which was definitely not allowed by the credit union's bylaws, they drew up a "sponsorship" contract between AEFCU and Bob Schacht Motorsports Inc.
Judy's board of directors knew nothing of this sponsorship or of a "joint venture agreement" that Judy signed on behalf of AEFCU. In fact, she thought she might be able to work it so that she would just pretend to put $5 million in an AEFCU account in Schacht's name, and then Mousley would be able to ping that and get the deal rolling.
And Judy knew she could never move $5 million--15 percent of AEFCU's deposits--into a deposit account at another bank.
District Court that she had defrauded an AEFCU customer (and, ultimately, the credit union's bonding company) out of $500,000.
To get her half of the money, she mortgaged her home in North Little Rock ($175,500, according to the public record), a houseboat and three cars at AEFCU and borrowed another $225,000 from "a personal friend."