Former Teller Who Stole From Deceased Members' Accounts Banned by NCUA

The NCUA banned a former Minnesota credit union teller from ever working at an insured financial institution last week after she was convicted and sentenced for stealing more than $145,000 from deceased members’ accounts.

In May, Luz Araceli Davila-Hernandez, 24, of Perham, was sentenced to 60 days in jail after she was convicted of a theft charge, Minnesota court records showed.

Through its internal investigation, the $2.4 billion Magnifi Financial Credit Union discovered Davila-Hernandez, who worked at the Perham branch, targeted and stole from more than 12 deceased members’ accounts and other accounts with bad addresses or dormant accounts, according to a police report.

The credit union’s investigation identified at least 25 fraudulent transactions and withdrawals from June 2023 to October 2023 that totaled $145,300. Magnifi also identified $48,832 in cash deposits made to Davila-Hernandez personal account and $7,000 that was deposited into her husband’s account, the police report showed.

The credit union also determined that Davila-Hernandez initiated the cash transactions from the targeted accounts via a computer at her teller station and retrieved the funds from a money recycler. She then moved the cash to her teller drawer and later placed it in her purse. On occasion, she used the ATM outside of the branch to deposit the stolen funds into her account, according to the police report.

Davila-Hernandez worked at the Magnifi branch for about three years.

In addition to her jail sentence, she was ordered to pay $139,924 in restitution and a $125 fine, Minnesota court filings showed.