Calhoun pleads guilty to charges
A Russell, Ky., man accused of stealing $3.8 million from the now-defunct SSP Credit Union pleaded guilty Wednesday afternoon to all the charges against him.
Douglas Calhoun, 60, will be sentenced Dec. 4 on 13 counts of theft and grand theft.
Lawrence County Prosecutor J.B. Collier Jr. said he was pleased that Calhoun chose to avoid a trial.
"It was the kind of trial that could have lasted a month," Collier said. " It would have been very technical, very involved. It spanned 13 years. Three employees of the insurance carrier spent 3,000 manhours reconstructing the case."
Collier said he will ask Lawrence County Common Pleas Judge Frank McCown to impose a lengthy prison sentence, and require Calhoun make restitution to American Share Insurance, the insurance carrier called in to dissolve the credit union and pay claims to the credit union members who were victimized.
"It's a shame," Collier said. "You have a person in a position of trust, and he violated that trust. Several credit union members were in court today and they truly feel violated by what happened."
Calhoun could get a five-year prison sentence on each of the 13 counts against him. But Collier said he expects the prison sentences would be served concurrently.
"There are pretty strict guidelines," Collier said. "(The) most he will probably serve is five years maximum. Because this was a series of thefts, it will probably preclude the prison sentences from being served consecutively."
Calhoun still faces civil action by those who lost money in the credit union scandal.
Calhoun was indicted in September on one count of theft, a class-five felony with a maximum sentence of 12 months; two counts of aggravated theft over $100,000, class-three felonies with five-year maximum sentences; and 10 counts of grand theft of amounts between $5,000 and $100,000, class-four felonies with a maximum sentence of 18 months.
The thefts allegedly occurred between Jan. 1, 1990 and May 17 of this year. Calhoun was arrested May 18 on charges of theft by deception, but was released on a $100,000 bond before being formally indicted in September.