Six former credit union employees, including two CEOs, a commercial services manager, a teller and a senior member service representative were banned from participating in the affairs of a federally insured financial institution, according to a prepared statement Friday from the NCUA.
Karen Schenck, the former president/CEO of the $4.6 million Corry Area Federal Credit Union in Corry, Pa., pleaded guilty to embezzlement. She was sentenced in May to two years in prison, and five years of supervised release. Schenck was also ordered to pay $741,362 in restitution.
Theresa J. Blageo, the former president/CEO of the $2.5 million Eaton Employees Credit Union in Eden Prairie, Minn., consented to a prohibition order and agreed to comply with all of its terms to settle the NCUA's claims against her, which were not specified by the federal agency. Although Blageo was not convicted of any crime, federal court records show she declared Chapter 13 bankruptcy along with her husband in December 2009 while she was president/CEO of the credit union. They had more than $600,000 in debts, according to court records. The bankruptcy case was discharged in April 2015. Blageo, who became the CEO in September 2002, left the credit union in January 2016.
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Allison M. Bushart, a former teller at the $5.6 billion Patelco Credit Union in Pleasanton, Calif., who stole from senior citizens, including a few who had dementia, pleaded guilty to embezzlement and submitting a false federal tax return. Bushart was sentenced to two years and seven months in prison in March and three years of supervised release. She was also ordered to pay $521,661 in restitution.
Eva Barroso, a former commercial services manager for the $548 million Oklahoma Central Credit Union in Tulsa, Okla., pleaded guilty to the charges of bank fraud and tax evasion. Barroso was sentenced in August 2014 to two years and two months in prison and five years of supervised release. She was ordered to pay $238,117 in restitution.
Linda A. Holland, a former employee for the $11.9 million Your Choice Federal Credit Union in Altoona, Pa, entered into an accelerated rehabilitative disposition program with respect to the charges of theft by deception and receiving stolen property, according to the NCUA. Holland was ordered to complete community service and pay restitution of $56,774.
Stephany Denler Moreno, a former senior member service representative for the $1.1 billion Communication Federal Credit Union in Oklahoma City, Okla., pleaded guilty to embezzlement and making false statements. She was sentenced to five years' of supervised release in July 2014. Moreno was ordered to pay $39,100 in restitution.
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Peter Strozniak
Credit Union Times reporter covering credit union operations, fraud, M&As, leagues, business continuity, and breaking news.
