Gail Teague was sentenced to three years of probation by a U.S. District Court judge in New Orleans Wednesday for stealing $34,000 in cash from the vault of a failed credit union.
Gail Teague, who worked as an office manager at the $9.2 million Ochsner Clinic Federal Credit Union in New Orleans, pleaded guilty to theft of bank funds in March.
Judge Stanwood R. Duval Jr. also ordered Teague to pay $34,000 in restitution.
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According to court documents, Teague agreed to testify against her sister Jacqueline Ray, the credit union's former president, who allegedly stole more than $1 million from the cooperative.
"The government's proof would be presented by agents of the FBI and NCUA, and auditors and employees of the credit union," court documents read.
However, as of Thursday, formal charges against Ray were not filed by federal prosecutors. U.S. Assistant Attorney Carter K.D. Guice Jr., who prosecuted Teague, declined to comment on Ray's case.
On June 28, 2013, the NCUA liquidated the $9.25 million Ochsner Clinic FCU of New Orleans, stating in a release it had determined the credit union was insolvent and had no prospect for restoring viable operations. The $307 million ASI Federal Credit Union of Harahan, La., immediately assumed Ochsner Clinic FCU's members, deposits and loans.
Court documents revealed that during the course of an NCUA audit, Teague admitted to stealing $34,000 by creating a fraudulent loan.
On May 17, 2013, more than a month before the NCUA announced Ochsner Clinic FCU's liquidation, Teague signed a hand-written confession acknowledging the theft after auditors interviewed her.
In January 2013, Teague created a fictitious loan in another person's name. The loan was disbursed in the form of an official credit union check made payable to a local auto dealership. Federal prosecutors did not identify the dealership.
After the check was re-deposited into the credit union, Teague withdrew $34,000 in cash from the vault, according to court documents.
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Peter Strozniak
Credit Union Times reporter covering credit union operations, fraud, M&As, leagues, business continuity, and breaking news.
