DETROIT, MI - An ex-dance studio owner who pleaded guilty to stealing nearly $19 million from an Oakland County credit union has been sentenced to spend the next 11 years in federal prison.
An orange Livingston County jail jumpsuit hung loosely from Michael LaJoice's frame as he appeared in Detroit U.S. District Court before Judge Gershwin A. Drain on Thursday, March 23.
"I'm not proud of what I've done," the ex-CFO told the judge through tears. "I used to think money could buy happiness - it doesn't. This is a huge amount of stress lifted off my shoulders. I don't have to live a lie anymore."
Calling the embezzlement "one of the biggest fraud cases the Eastern District court has ever seen," Drain sentenced LaJoice to 11 years behind bars, followed by three years of supervised release.
The judge also ordered LaJoice to participate in the inmate financial responsibility during his jail stay, which LaJoice's attorney -- Michael P. Manley -- requested be served at the federal prison in Morgantown, West Virginia.
Drain waived LaJoice's court fines and prison costs, instead ordering the former credit union CFO to pay back the $18,655,431 he stole over a 12-year period.
"This was out of pure greed," said Drain, noting that LaJoice had stolen roughly $1.5 million dollars per year from the Clarkston Brandon Community Credit Union "simply to live a lavish lifestyle."
"You had a good background, a good family, a good job that trusted you," said Drain. "In fact, they had too much trust in you. You made a mockery of the fundamentals our community holds dear."
In November, LaJoice pleaded guilty before Drain to a single bank fraud count. As part of his plea agreement, he waived the right to appeal the sentence.
According to court records, over 12 years, LaJoice used the stolen money to purchase Chasse Ballroom and Latin Dance Studio in Fenton, a $95,000 Cadillac Escalade, land in Fenton he planned to develop and other items.
Investigators allege LaJoice began taking the money from the credit union in 2003.
An ongoing audit at the credit union uncovered some discrepancies. That was when LaJoice said he needed to leave and that he'd come back with information that would clear up any issues.
Police said LaJoice never returned.
Instead, he walked into the Oakland County Sheriff's Office two days later and allegedly admitted to the embezzlement.
"He turned himself in, but that was no noble act. It was totally motivated by the desire to minimize his criminal responsibility," said April Clobes, president and CEO of Michigan State University Credit Union, which absorbed the Clarkston Brandon Community Credit Union after it was declared insolvent following the discovery of LaJoice's embezzlement.
"Credit unions are where people put their life savings. and [Clarkston Brandon Community Credit Union] is where 9,400 people trusted to keep their life savings," Clobes said, requesting Drain sentence LaJoice to at least 12.5 years in prison.
As a result of the takeover, some Clarkston Brandon Community Credit Union employees were not retained, while others had their compensation and benefits altered, records show.
Manley said that while "there's no intellectually honest way to justify" his client's actions, LaJoice's moral compass throughout the case was to be a "problem-solver."
"He wants to make it right. When it comes to protection of society or being dangerous, he's a husband, he's a father, he's not dangerous," said Manley, requesting a sentence under ten years. "He's a broken man. He's lost over 100 pounds since this case started."
As part of his plea agreement, LaJoice agreed to forfeit more than $17.7 million, less the amount recovered in the following civil action by Michigan State University Federal Credit, according to court records.
Authorities agreed they would not seize more than $32,000 in cash that was held in PayPal and bank accounts of LaJoice's wife.
LaJoice's wife also was able to keep a 2015 Jeep Grand Cherokee, according to the preliminary order of forfeiture. She also is able to keep any personal belongings that were in her possession that were removed from their Tyrone Township home that were sold except for any Tiffany jewelry, which will be relinquished to the credit union, court records said.
Because he faces state charges as well as federal, LaJoice is scheduled to appear back in court on Monday, March 27 before Oakland County Judge Cheryl Matthews.
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Drain okayed Manley's request for any state and federal sentences to run concurrently.
Manley said his client intends to plead guilty to all state charges.
"He just wants to make this right," Manley said.
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