The NCUA last month banned five former credit union employees, which included three CEOs and an accountant. Four of the five collectively stole more than $2 million, which led to the liquidation of two credit unions and losses to NCUA's insurance fund.
Allennie Naeole, former president/CEO of the $3.1 million First Hawaiian Homes Credit Union in Hoolehua, Hawaii, pleaded guilty to conspiracy to commit embezzlement and aggravated identity theft. She was sentenced in June to seven years in prison, three years' supervised release, and was ordered to pay $1,055,188 million in restitution. Her theft led to the December 2015 liquidation of the credit union and a loss of more than $2 million to the NCUA's insurance fund. In this case, Janell Purdy, a former customer service representative and teller, was sentenced to more than four years in July for her role in the conspiracy to embezzle funds from the credit union. She was ordered to pay $949,736 in restitution.
Stanley D. Hayes, a former president/CEO of the $19.8 million Valley State Employees Credit Union in Saginaw, Mich., pleaded guilty embezzlement, computer crime and racketeering. He was sentenced in April to serve up to 20 years in prison and was ordered to pay $709,000 in restitution. His theft led to the credit union's liquidation in April 2017.
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Melody Camba, a former accountant of the $20 million Independent Employers Group Federal Credit Union in Hilo, Hawaii, pleaded guilty of embezzlement. Camba was sentenced in December 2016 to two years in prison, five years' supervised release, and was ordered to pay $308,696.38 in restitution. Her theft was detected after the credit union merged with the $1.7 billion HawaiiUSA Federal Credit Union in Honolulu in December 2015.
Jane L. Madtson, a manager of the $1.9 million Grays Harbor Community Hospital Federal Credit Union in Aberdeen, Wash., was charged with theft in December 2017. After pleading guilty, she was sentenced to 30 days in prison and 240 hours of community service, and was ordered to pay $8,309 in restitution, according to the NCUA. Grays Harbor Community Hospital Credit Union was merged into the Aberdeen-based Grays Harbor Woodworkers Federal Credit Union in January 2016. Three months after the merger in March 2016, the former manager of Grays Harbor Woodworkers FCU, Krista Stephanie Putnam, burned financial documents during an NCUA examination to conceal her $350,000 theft. She was sentenced to 14 months in prison in January.
Amy Simon, who the NCUA described as a former employee or institution-affiliated party of the $1.5 million South Jennings Catholic Federal Credit Union in Jennings, La., agreed to a prohibition order and agreed to comply with all of its terms to settle and resolve the NCUA s claims against her. The federal agency did not report its alleged claim against Simon. The credit union no longer exists. Its last Call Report was filed with the NCUA in December 2017.
The NCUA's one prohibition order and four prohibition notices released in September mean these individuals are prohibited from participating in the affairs of any federally insured financial institution
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Peter Strozniak
Credit Union Times reporter covering credit union operations, fraud, M&As, leagues, business continuity, and breaking news.
