Two former credit union workers in Virginia and Georgia were the subjects of prohibition actions in December, the federal regulator said Tuesday. The actions permanently prohibit both from participating in the affairs of any federally insured depository institution (although both may be credit union members or bank customers).
Demetria Baker, a former employee of Lynchburg Municipal Federal Credit Union (FCU) in Lynchburg, Va. was ordered prohibited by the National Credit Union Administration (NCUA) Board. According to the agency’s filings, Baker made a series of loans to herself and her son that were in violation of the credit union’s policies for approval, documentation, or underwriting.
“These loans were used by Respondent and her son for multiple purposes such as personal enrichment and payment of personal bills and were repeatedly adjusted and modified in violation of LMEFCU policies,” NCUA said. “In addition, during this same time period, a significant amount of cash was removed from a cash drawer that was only accessible to Respondent. “
Meanwhile, NCUA said it had filed a notice of prohibition against Teresa Paulo, a former employee of Southern Pine Credit Union in Valdosta, Ga., who the agency said was convicted in September in federal court of aggravated identity theft and bank fraud while working at the credit union.
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