Message from the UNA president (11/17/02)

Message from the UNA president

Dear UNA Members:

The State of New Jersey has brought criminal charges against a former UNA sales agent, Joseph Binczak, who is accused of theft, forging signatures and falsifying documents over the course of several years in a scheme to fraudulently obtain funds from the annuity accounts of seven UNA members.

For almost two years the UNA has been quietly cooperating with New Jersey State authorities to gather evidence about these acts of theft, and we are grateful that all seven members fully cooperated with the investigation.

Though the UNA is pleased that the investigation has now led to an indictment, we are also devastated. Mr. Binczak worked for the UNA for more than eight years. He was a trusted and well-liked employee. We work hard to build trust in our community and feel as though "our own" would not deceive us. Mr. Binczak deeply violated that trust.

It is important to note that no Ukrainian National Association policyholder has suffered any financial loss as we at the UNA made full and immediate payment to our victimized members. We are deeply committed to our policyholders, which is in keeping with the Ukrainian National Association's nature as a non-profit fraternal benefit society. We want to prevent losses to innocent and loyal UNA members.

In a sophisticated scheme that eluded internal audits, external audits by independent CPAs and New Jersey state insurance examinations, signatures were forged on funds withdrawal requests and confirmations, and account statements and other documentation were falsified.

In America, insurance fraud is epidemic. Though it is good to trust each other, we must also remember our Ukrainian folk adage "God protects those who protect themselves." This case demonstrates the need for all UNA members to take the time to carefully review not only their UNA information, but their other financial information as well, such as their checking, savings and investment accounts. In fact, the UNA initiated this investigation after one of our members contacted the Home Office, seeking clarification of an unusual transaction on her statement.

Due to the ongoing investigation, we could not previously share any of this information with our members. However, now that the indictment has been handed down, we have issued a press release to the news media; that release appears in both of our publications.

Throughout its 108-year existence, the Ukrainian National Association has maintained a strong history of achievements and trust, which makes this recent violation of our trust most deplorable. This loss, while serious and regrettable, does not change the fact that the UNA is a sound and stable financial institution, with a high ratio of assets to liabilities and a healthy reserve account. We hope to recover our misappropriated funds, and we have obtained a court judgment that recognizes our right to recover these funds and permits us to begin the process of collecting money from Mr. Binczak. We believe that the perpetrator of this crime will be brought to justice.

Fraternally yours,
Stefan Kaczaraj
President, Ukrainian National Association

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