NCUA official seal NCUA official seal. (Source: NCUA)

For breaching their fiduciary duties, two former credit union employees, Shannon Rider and Rachel Gaudreau, were banned from ever participating in the affairs of a federally insured financial institution, the NCUA said Friday.

The independent federal agency also said it terminated a 2021 cease and desist order for the $60.8 million Live Life Federal Credit Union in Fraser, Mich., which fulfilled the order's terms and requirements regarding marijuana-related business accounts it was managing at that time.

In December 2021, Rider, a member service representative for the $6.4 million Erie Times Federal Credit Union in Erie, Pa., allegedly aided and abetted an accomplice in a check kiting and debit fraud scheme using her personal accounts and employee access at the credit union, which caused ETFCU to suffer "significant financial loss."

Although the NCUA did not specify the specific amount of the loss, at the end of 2021, ETFCU posted a net income loss of $290,293, according to NCUA financial performance reports.

Rider did not admit nor deny the NCUA's allegations, according to the federal agency's administrative order. The order also did not say whether this incident was reported to law enforcement authorities.

ETFCU, which was chartered in 1935 and served 771 members, was merged with the $779 million Erie Federal Credit Union last year.

Rachael Gaudreau, a former employee of the $77.2 million Westport Federal Credit Union in Westport, Mass., drew an unauthorized credit union check for $7,565 and forged the authorization signature on the check, according to the NCUA.

In July 2020, she was charged in Fall River District Court with forgery of a check, uttering a false check and embezzlement from a bank.

Gaudreau was placed in a pretrial diversion program, which required six months of probation and restitution of $5,000 to the credit union. In May 2021, the court dismissed the charges at the end of Gaudreau's probation and satisfaction of restitution, according to the NCUA's administrative order.

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