Four former credit union employees were prohibited in October from further service at federally insured financial institutions, their federal regulator said Thursday, with one in the wake of a $211,000 theft.
The National Credit Union Administration (NCUA) said three consent orders and one outright prohibition were ordered in October. In each of the consent orders, the individuals all agreed to the prohibition. The fourth was ordered after the individual had been convicted of fraud and theft.
In the case of Gloria J. Hall, a former employee of Prairie View Federal Credit Union (FCU) in Prairie View, Texas, NCUA charged that Hall made six unauthorized transfers from member accounts, totaling $211,536 to the accounts of other credit union members. “This money was used by Respondent for multiple purposes such as personal enrichment, payment of personal bills, and servicing of other loans fraudulently obtained by the Respondent,” the agency charged in its order. The credit union also incurred significant losses “necessitating its merger with another credit union,” the agency said.
Other consent orders to prohibitions reported by NCUA included:
- Diane Stephens, a former employee of Priority First FCU of Du Bois, Pa. over misconduct which the agency said ultimately caused a monetary loss to the credit union, resulting in her termination.
- Laurie Allen, a former employee of Vibrant Credit Union, Danville, Ill. over embezzlement from that credit union and one that merged into Vibrant (First Illinois Credit Union).
Also, the agency reported it prohibited Salusthian Lutamila, a former employee of IDB Global FCU in Washington, D.C. Lutamila, in 2022, was convicted in 2022 for 21 counts of various forms of fraud and theft from the credit union, the agency said.