Former MN credit union teller barred from future FI service

A former teller of Magnifi Financial Credit Union, Melrose, Minn., who pled guilty to one count of felony theft this March has been prohibited from any future work in a federally insured financial institution, the federal credit union regulator said in a consent order announced Friday.

In the order, the National Credit Union Administration (NCUA) said Luz Araceli Davila-Hernandez used her position as teller to identify accounts vulnerable to theft and, between May 31 and Oct. 16 of last year – the period of her employment – “made a series of unauthorized cash withdraws” from the vulnerable accounts and deposited them into accounts she controlled. It also said Davila-Hernandez changed the accounts’ contact information to her own so notices of unauthorized withdraws would go to her instead of the account-owning members.

The order states that her actions caused the credit union “significant financial loss” and that she was terminated Oct. 16, 2023.

NCUA Prohibits One Individual from Participating in the Affairs of Any Federally Insured Depository Institution