As 1975 drew to a close, DeMeo was the subject of Internal Revenue Service (IRS) investigations into his income. Months earlier, the Boro of Brooklyn Credit Union had been pushed into insolvency as a result of DeMeo and his colleagues' plundering of its finances. As a result, DeMeo quit the Credit Union. Before an indictment could be handed down against him, he utilized false affidavits from businesses owned by friends and acquaintances claiming he was on their payrolls as an employee. These affidavits served to account for some of his income, allowing him to reach a settlement with the IRS.