Message from the UNA president regarding former UNA sales agent Joseph Binczak

Dear UNA Members:

On January 7, New Jersey Superior Court Judge Salem Ahto sentenced former Ukrainian National Association sales agent Joseph Binczak, who pleaded guilty to stealing from the association, to three years in state prison and imposed a condition of restitution, requiring Mr. Binczak to pay approximately $570,000 to the UNA.

In November 2002 we informed our members that the State of New Jersey had brought criminal charges against Mr. Binczak, accusing him of theft, forging signatures and falsifying documents in a scheme to fraudulently obtain funds from the annuity accounts of seven UNA members. In September 2003, Mr. Binczak voluntarily pleaded guilty to charges of theft by deception and awaited sentencing.

The UNA is pleased that this case is coming to an end. Nonetheless, we remain stunned by Mr. Binczak's deep violation of our community's trust. For almost two years the UNA quietly cooperated with New Jersey state authorities to gather evidence about these acts of theft that occurred between 1996 and 2000. No Ukrainian National Association policyholder suffered any financial loss, since the UNA made full and immediate restitution to our victimized members.

At the sentencing on January 7, which was attended by UNA National Secretary Christine Kozak, Mr. Binczak's attorney claimed in his defense that Mr. Binczak, 39, had an uncontrollable gambling problem that caused him to steal. Currently, according to the state prosecutor's office, Mr. Binczak has no assets. He has repaid $60,000 of the $633,700 that he stole from the UNA. Mr. Binczak also stole $133,000 from a client in Pennsylvania, who had an account with Conseco. He will serve the sentence handed down in Pennsylvania concurrently with his sentence in the New Jersey prison. The UNA will continue to pursue Mr. Binczak and any of his future assets through actions in civil court.

Thankfully, over its 110-year history, the UNA has never been the victim of fraud. Yet, financial fraud is epidemic in America these days. Therefore, we ask that all our members carefully review, not just the information that they receive from the UNA, but also from other financial institutions. As we have noted before, though it is good to trust each other, we must remember our Ukrainian folk adage "God protects those who protect themselves."

We thank all of our members for their continuing support and loyalty, and look forward to serving you in the future.

Fraternally yours,
Stepan Kaczaraj
President
Ukrainian National Association

Copyright © The Ukrainian Weekly, January 18, 2004, No. 3, Vol. LXXII

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