Former Credit Union VP Faces Sentencing for $350,000 Theft

Merrideth Christina McMillian, a former vice president of the $212 million Singing River Federal Credit in Moss Point, Miss., will be sentenced in June for taking out more than $350,000 in fraudulent loans against her grandmother’s estate, and in the names of her husband, father, a friend and members, according to the U.S. Attorney’s office for the Southern District of Mississippi.

During a federal court hearing last week, McMillian, 46, of Vancleave, pleaded guilty to one felony count of credit union theft.

After an August 2018 audit, the credit union uncovered a “web of fraudulent activity” and contacted the FBI, which launched an investigation, Assistant U.S. Attorney Kathlyn Rose Van Buskirk said.

A month later, McMillian was fired.

The former employee obtained a legitimate loan from Singing River FCU, using her grandmother’s estate as collateral. But in October 2017, McMillian accessed the bank’s computer system and released the collateral that secured the loan and then borrowed against the estate on five different occasions by manipulating the computer system, Van Buskirk said.

Additionally, after McMillian was unable to contact a member for failing to make monthly payments on a loan, she took out four unsecured loans in that members’ name without consent.

The former credit union employee also used other member accounts without their consent for the loans ranging from $5,000 to more than $60,000, the federal prosecutor said.

McMillian also used a friend’s name and a member’s money market account information to take out another fake loan for $47,500. She used this money to pay back the phony loans taken against her grandmother’s estate. McMillian prevented loan statements from reaching her friend, Van Buskirk said.

She also took out loans in names of her husband and father without consent.

“When questioned by (FBI) agents, Ms. McMillian admitted to her conduct and she stated, ‘I made a big mistake and I’m very sorry,’” Van Buskirk said.

McMillian made no statement during the court hearing.

Before she joined Singing River FCU, McMillian worked at the $331 million Navigator Credit Union in Pascagoula, Miss., for 23 years where she started in 1991 as a part-time teller and served as a loan supervisor, consumer loan manager and became chief information officer in 2004.

In January 2014, McMillian claimed she was forced to resign and then filed a complaint with the Equal Employment Opportunity Commission claiming sex discrimination and retaliation against Navigator CU. After an EEOC investigation was unable to establish any violations, she filed a federal lawsuit in February 2015, making the same claims of sex discrimination and retaliation against the credit union. Navigator CU denied these allegations, according to court documents.

However, the court documents show that in December 2013, McMillian was questioned by Navigator CU’s supervisory committee about her transferring funds from her grandmother’s account allegedly for unauthorized purposes.

Though McMillian acknowledged she transferred the funds from her grandmother’s account, she also said that her grandmother and her brother drafted letters to the supervisory committee to explain how the funds were spent. But Navigator CU denied that the letters “sufficiently explained how such funds were spent,” according to court documents.

McMillian alleged the credit union retaliated by informing the state’s department of human services and reported potential elderly abuse over her grandmother’s account. According to court documents, McMillian said DHS conducted an investigation and that the case was closed in her favor.

Navigator acknowledged DHS was contacted about potential elderly abuse, but it could not vouch for the veracity of McMillian’s claim that the case had been closed in her favor.

In November 2015, McMillian and Navigator CU reached a confidential settlement, court records show.