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Joshua Smith, a former teller at a South Carolina branch of the $699 million Bayer Heritage Federal Credit Union, pleaded not guilty to bank fraud in U.S. District Court in Charleston, S.C. last week.
A federal indictment alleged that Smith stole $48,000 from the branch while he worked for the credit union, which is headquartered in Proctor, W. Va.
Smith began submitting fraudulent transaction receipts for members starting in July 2021, which enabled him to withdraw money from their accounts.
These alleged fraudulent transactions occurred when no member was present at the counter or drive-thru. Bayer Heritage's business practice was to only conduct transactions when a member was present at the counter or drive-thru and to require a customer signature on any transaction receipts to verify their legitimacy, the indictment showed.
Smith allegedly wrote phony withdrawal slips and then left the signature field blank or taped legitimate signatures from previous member transactions to receipts to make them appear legitimate.
He allegedly scanned the doctored and fraudulent transaction receipts into the Bayer Heritage computer system and withdrew money from members' accounts, according to the indictment.
Over three months, Smith allegedly withdrew $48,000.
Smith's attorney did not respond to a CU Times request for comment.
Smith is free on a $5,000 bond. His trial date has not yet been scheduled.
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Peter Strozniak
Credit Union Times reporter covering credit union operations, fraud, M&As, leagues, business continuity, and breaking news.
