Trial date set in $20M embezzlement case at Oakland County credit union

PONTIAC, MI - A Fenton businessman who is accused of stealing millions is headed for a December trial date in Oakland County.

But his attorney hopes to reach a deal before that happens.

Michael LaJoice, 37, is accused of stealing more than $20 million over 12 years while working at the Clarkston Brandon Community Credit Union in Independence Township.

LaJoice used the money to promote the now-shuttered Chasse Ballroom and Latin Dance Studio in Fenton, buy millions worth of real estate in downtown Fenton and purchase a custom-built home in Tyrone Township that was worth more than $1 million.

Attorney Michael Manley he's been working to get money back to those it was taken from.

"I do not anticipate this case going to jury trial," Manley said. "We sold all of the property. We initiated it. We cut through so much legal work and red tape."

Manley said he sold more than $1 million worth of LaJoice's downtown Fenton properties and plans to close on the sale of the Tyrone Township home in October.

With LaJoice facing the possibility of decades in prison, Manley said he hopes recouping as much money as possible will limit his time behind bars.

"We're looking at significant prison time and that's why we're doing all this work - to mitigate as much as we can and put Mr. LaJoice in a more favorable light."

LaJoice is charged with 14 felony counts of embezzling more than $100,000 - each a 20-year felony.

When he was jailed in January on the embezzlement charges, investigators said in court that they believe LaJoice was taking money from the credit union in $100,000 increments and depositing it into his personal account since 2003.

Manley said he expect LaJoice will make full restitution on the Oakland County criminal case, which is around $2 million.

The embezzlement was discovered during an audit at the credit union while LaJoice was working as the chief financial officer.

Authorities say LaJoice knew how to produce the credit union's financial statements, make general ledger entries and automated withdrawals and how to reconcile the institution's corporate account statements.

It was that knowledge that federal officials claim allowed LaJoice to embezzle more than $18.6 million, according to the criminal information filed in Detroit U.S. District Court.

"I don't think we'll get full restitution on the federal case," Manley said. "I think that's an unrealistic expectation."

LaJoice is accused of bank fraud and is accused of stealing more than $2.5 million between Oct. 23, 2007 and Dec. 15, 2015 by issuing cashier's checks from various accounts at the Clarkston Brandon Community Credit Union without permission, federal court documents state.

The checks were then deposited into LaJoice's bank accounts at various financial institutions. The checks were made payable to the financial institutions, as well as to fictitious individuals and were typically deposited at automated teller machines, according to court documents.

Between Feb. 18, 2011 and Sept. 30, 2015, LaJoice allegedly stole more than $16 million from the Clarkston Brandon Community Credit Union by making transfers from the credit union to his personal accounts at institutions such as PayPal, Capital One Bank, TD Ameritrade and American Express, court documents said.

The funds came from the credit union's investment general ledger, which LaJoice was responsible for balancing, the criminal information documents said.

After the funds were deposited into LaJoice's accounts he would clear Clarkston Brandon Credit Union's ledger to delete the corresponding transaction. He would then wire transfer the funds from his personal accounts to other accounts, including his business account at Comerica Bank, court documents said.

LaJoice was able to conceal his fraudulent activities, court documents say, by creating fictitious investments in certificates of deposits and bonds at a bank in Miami. The fictitious investments were given to auditors and state examiners conducting annual financial audits at the Clarkston Brandon Community Credit Union to show that the credit union's books were balanced and to avoid detection of the missing funds.

Court documents allege LaJoice used the stolen money to pay cash to build and furnish his new custom-built home in Tyrone Township that was worth more than $1 million, buy several new vehicles and properties and market his dance studio.

The dance studio, Chasse Ballroom and Latin Dance Studio in Fenton, is now closed.

His LaJoice Properties LLC, purchased a 3.35-acre site at 225 W. Caroline St. in downtown Fenton for $1.2 million in June 2015 for a planned development that was derailed by his arrest.

The property was sold to SkyPoint Ventures, a real estate and business investment company owned by Diplomat Pharmacy CEO Phil Hagerman and his wife, Jocelyn.

"I can't change what happened," Manley said. "I can't change Mr. LaJoice's admissions, but what I can change is making the victims whole again as quickly as we can."

LaJoice remains in the Oakland County Jail.

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