NCUA Issues Trio of Prohibition Orders

NCUA issued orders of prohibition for three individuals formerly working in the credit union movement.

By Staff Writer | October 17, 2006 at 08:00 PM

ALEXANDRIA, Va. — NCUA issued orders of prohibition for three individuals formerly working in the credit union movement.

Former manager of #1 Federal Credit Union in Jonesboro, Ga., Teri Lynn Scarbro, pleaded guilty to embezzlement and was sentenced to 33 months in prison, 5 years of supervised probation upon release, and ordered to pay $512,859 in restitution.

Without admitting or denying fault, Michael G. Hannagan, former manager of Seaport Federal Credit Union, Elizabeth, N.J., and Kari L. Kuechenmeister, former manager of Headwaters Federal Credit Union, Bemidji, Minn., agreed to prohibition orders to avoid the time and expense of litigation.

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Violation of a prohibition order is a felony offense punishable by imprisonment and a fine of up to $1 million.

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