Christina Hall

Detroit Free Press

Michael LaJoice was known for charitable giving and was honored in 2013 as a community hero in Fenton for being an everyday person who went out of his way to help others and the community.

Earlier this week, a little more than two years after receiving that Community Hero Award from the Fenton Regional Chamber of Commerce, the businessman and accountant walked into the Oakland County Sheriff's Office and told detectives that he embezzled about $20 million over a dozen years from Clarkston Brandon Community Credit Union, while he was the chief financial officer.

Now, the 36-year-old community stalwart — whose alleged embezzlement somehow slipped under the radar for years at the small credit union — is being held in the Oakland County Jail on a $1-million cash or surety bond after arraignment today on 14 embezzlement-related charges.

"He was living a lifestyle, including philanthropy, with other people's money," Oakland County Sheriff Michael Bouchard said, adding this is one of his office's largest embezzlement investigations.

Bouchard said LaJoice made less than a $100,000 per year as the CFO yet lived in a multimillion-dollar home in northern Livingston County and had millions of dollars in business investments, including a dance studio and a retail and residential project under development in Fenton.

LaJoice of Tyrone Township was charged with one count of embezzlement financial institution and 13 counts of embezzlement $100,000 or more in 52-2 District Court in Clarkston.

On Wednesday, the Tyrone Township man walked into the Sheriff's Office headquarters in Pontiac and told investigators that he embezzled about $20 million during a 12-year period at the credit union in Independence Township, where he had been CFO since 2003. Undersheriff Mike McCabe did not say what prompted LaJoice to turn himself in.

Investigators froze LaJoice’s bank accounts and sheriff’s investigators executed search warrants at several locations and on financial accounts linked to LaJoice, who was developing a massive retail and residential project in Fenton.

Among the locations searched were his home and a dance studio owned by LaJoice. The studio posted on its Facebook page that it would be closed until further notice.

A safe, computers and business records were removed from his home and were examined Thursday as investigators attempted to track down missing funds.

A preliminary investigation revealed the scheme involved bogus transactions and investments to mask the embezzlement, which began to unravel during a recent audit at the credit union on Ortonville Road, authorities said.

Why the missing funds were overlooked is unclear. Bouchard said he's stunned why this wasn't picked up by the financial institution.

"This isn't the Bank of New York," he said. "It's a small asset credit union."

Bouchard added: "it was a huge amount of money on a salary under a hundred (thousand dollars). This is an unsustainable pattern."

As a result of LaJoice's statements during a police interview and the additional investigation, LaJoice was charged by the Oakland County Prosecutor's Office, the Sheriff's Office said.

If he posts bond, LaJoice is to wear a GPS tether with home confinement, according to the district court. There was no attorney appearance on file at the court, but Flint attorney Michael Manley confirmed Saturday that he was representing LaJoice. In a brief statement he said,

"I have not received any of the discovery materials at this point. Once those are received, we will conduct our own investigation as to whether the statements that have been attributed to Mr. LaJoice from law enforcement are in fact true. Until then, we will have no further comment."

LaJoice has a probable cause conference Jan. 20 and a Jan. 26 preliminary exam.

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The Sheriff's Office said the investigation is ongoing and it is working with federal regulators and the FBI. Bouchard said the investigation will include whether LaJoice acted alone or whether others were involved or a recipient of the activity.

Donna Bullard, president and CEO of the credit union, said in an e-mail today that an investigation is being conducted into a possible embezzlement of funds from the credit union by a former employee.

"While this investigation is proceeding, we want to assure our members that it is business as usual at the credit union. Members should remember that all accounts are insured by the NCUA, a federal share insurance agency for up to $250,000," according to her e-mail. "At this time, we are unable to comment any further while the investigation is ongoing. Members will be updated in the future when more information is available."

According to his LinkedIn account, LaJoice has been president of LaJoice Properties LLC since April and president of Chasse Ballroom and Latin Dance Studio since June 2007. He has been president of LaJoice Enterprises, Inc. since 2006 and chief financial officer with the credit union since May 2003.

His LinkedIn account states that he attended Linden High School in 1993-97 and Baker College of Flint in 1997-2003, receiving a bachelor's degree in accounting and finance and that he is married. According to www.realtytrac.com, LaJoice has a more than 5,800-square-foot home with an estimated value of more than $1-million.

Bouchard said LaJoice's home is worth well over $4 million and he understood that the proposed development in Fenton was in the multiple millions of dollars as well.

"If you're running under the radar, that's not the way to do it," Bouchard said.

Contact Christina Hall: chall99@freepress.com. Follow her on Twitter: @challreporter. The Livingston Daily contributed to this report.