NCUA Public Affairs Specialist John Fairbanks said the federal agency is aware of the investigation but could not provide comment on it.

Nevertheless, the HPFCU member letter stated that credit union staff discovered the fraud on Aug. 6 and notified the board and supervisory committee.

"The former executive is believed to have acted alone, allegedly creating a highly sophisticated system that skirted the redundant internal controls that are in place to prevent fraud like this," the letter read. "We took immediate action to ensure no further fraud could be committed."

The letter also noted that internal investigations reviewed the employee's activities and all of the potential incidents of fraud.

"Thus far, the investigation has found multiple potential fraud instances, and it may find additional (instances) as the investigation continues," Storemski and Talley wrote. "Our goal is to gain a clear and accurate understanding of what happened so we can prevent anything like this in the future."

The letter also stated that in the past year, federal examiners and a private audit firm reviewed the credit union's financial and operating systems and offered no criticism of internal controls. 

Storemski and Talley assured the credit union's 25,293 members that the cooperative is well capitalized and financially strong.

As of June 2015, HPFCU posted a net worth of 13.09% compared to its peer average of 10.95%, according to the NCUA's financial performance reports. Additionally, the credit union also posted an ROA of 1.15%, which is above the peer average of 0.83%, at the end of the second quarter.

"We can assure you, we are seeking the full prosecution of the former employee and full restitution!" the letter read.

Douglas Griffith (pictured at left), first vice president of the Houston Police Officer's Union and an HPFCU member, said even though it was disheartening that the fraud went on for however long, the credit union has done a phenomenal job for officers as well as their families, and that their money is safe and secure.

"It was my understanding that it was an elaborate scheme that was done over several years, but at the end of the day, our money is safe," he said. "There are certain instances that you are not going to stop. If someone wants to get money they are going to find a way to do it and this individual did that."

HPFCU did not immediately return a call Friday morning from CU Times seeking additional comments on the embezzlement.

In May, CU Times reported that a Houston police officer charged with drug crimes in U.S. District Court in New Orleans, La. allegedly used his credit union account to funnel drug money that financed more than $193,000 in loans to buy high-end cars for members of one of the most dangerous Mexican drug cartels.

Noe Juarez was charged with conspiracy to distribute more than five kilograms of cocaine hydrochloride, or crack cocaine, in Louisiana. He also was charged with conspiracy to possess firearms to support drug trafficking crimes in that state, according to court documents. If convicted, he could face a life sentence.

To build their case that Juarez was working with members of the Los Zeta Drug Cartel, federal agents subpoenaed his HPFCU records. His account showed Juarez made dozens of large cash and check payments, including two or three large cash payments in a day.

HPFCU was not implicated in any wrongdoing in the Juarez case, and it is not believed to be related to the alleged embezzlement investigation.

Officer Griffith said Juarez was fired from the Houston Police Force.