Former CU Assistant Branch Manager Sentenced in $134,000 Loan Fraud Scheme

Former credit union assistant branch manager Nadaje Hendrix will begin an eight-month federal prison sentence in November for stealing more than $130,000 in fraudulent loans in the names of Massachusetts state prisoners that she got from an incarcerated convict.

During a sentencing hearing earlier this month, U.S. District Judge Julia E. Kobick in Boston also ordered Hendrix, 27, of Brighton to three years’ supervised release following her prison term and to pay restitution of $134,000.

Federal prosecutors recommended that Judge Kobick impose a two-year prison sentence for the loan fraud scheme Hendrix initiated in 2019 at the $1.8 billion Hanscom Federal Credit Union at Hanscom Air Force Base, Mass.

“Hendrix was in a position of power and trust at the credit union, and she used that power to steal from her employer, with an imprisoned co-conspirator. Seventeen times,” prosecutors wrote in their sentencing memo to Judge Kobick. “For the credit union, Hendrix’s scheme represents a nightmare situation in which an insider with detailed knowledge of its procedures and safety protocols uses that knowledge to steal.”

What’s more, prosecutors noted the crime created long-term financial problems for the prisoners whose personal identifying information was used to steal loans, making it more difficult for them to re-enter the community following their prison terms. In addition, prosecutors said the fraudulent scheme undercut the credit union’s loan program that was aimed to help infuse capital into underserved and poor communities in the state that often cannot get funding for business and personal projects.

Even a 24-month prison sentence recommended by prosecutors would put Hendrix’s imprisonment below the average length of imprisonment and at the median and the average sentence length, according to prosecutors.

Federal court filings showed that Hansom submitted a victim’s impact statement to Judge Kobick, but it was not publicly available.

In her sentencing memo, Hendrix said she has taken full responsibility for her actions and has been working hard to forge a productive path forward. In addition to holding a full-time job that covers her expenses and has enabled her to save some money to pay toward the restitution she owes, she is the primary caregiver for her disabled mother. Hendrix asked Judge Kobick for a home confinement sentence to be followed by three years of supervised release.

Hendrix’s attorney did not respond to a CU Times request for comment.

In January, the former credit union assistant manager was indicted by a federal grand jury along with alleged co-conspirator Glenroy Miller who was a prisoner at the Massachusetts Correctional Institution Cedar Junction at South Walpole. After pleading not guilty to one felony count of conspiracy to commit bank fraud, his case remains pending in Boston’s federal court.

In July, Hendrix pleaded guilty to one felony count of conspiracy to commit bank fraud.

Starting in 2019, Hendrix had authority to process loans, and once a manager, she could approve loans of up to $10,000, without further review. In December 2019, Hendrix opened a bank account and took out a loan for Miller, whom she had known since 2011, The application that Hendrix prepared falsely stated Miller’s address and employment in Boston when, in fact, he was doing time in state prison.

Miller gave Hendrix the personally identifiable information (PPI) of his fellow inmates for her to use in creating fraudulent loan applications, and then arranged to have other co-conspirators go to the credit union branch to sign the loan documents and obtain the funds. The scheme also involved obtaining loans in the names of individuals whose identities were stolen from other sources.

Miller managed to get the PPI of prison inmates after telling them he could help repair their credit histories. Hendrix kept about 10% of each fraudulent loan she processed and approved, according to court documents.