Credit union regulator prohibits two for scheme to defraud, theft

Two former credit union workers have been prohibited by their federal regulator from future service in a federally insured financial institution, the regulator said Monday.

The National Credit Union Administration (NCUA) said Monica Jackson, the former operation and marketing manager for Koin Credit Union (KCU) in Brentwood, Tenn., consented to the prohibition because of her pleading guilty early this year to a scheme to defraud.

NCUA alleged in its administrative order that she “engaged in an elaborate scheme to defraud KCU member funds, including using her position as Operation and Marketing Director to unlawfully and without permission take cash out of the credit union’s vault, make unauthorized transfers to herself out of the account of a deceased member, and fraudulently open and use lines of credit in the names of nominees for her own personal gain.”

The agency added that she further used the master administration access code of KCU to lock one of the accounts she was using to conceal her fraudulent activity from other employees and the credit union. “Respondent’s fraudulent activities caused KCU significant financial loss,” NCUA stated.

Meanwhile, the agency announced that Autumn S. Smith, a former employee of SecurityPlus Federal Credit Union (FCU) in Baltimore, Md., was prohibited following her conviction and sentencing in April. The agency said she was convicted in state court of the offense of “Theft $1,500 To Under $25,000,” which was the result “of your misconduct at SecurityPlus Federal Credit Union, Baltimore, Maryland.”

NCUA Prohibits Two Individuals from Participating in the Affairs of Any Federally Insured Depository Institution