The National Credit Union Administration in September banned five individuals from working in the credit union industry.
The NCUA issued prohibition notices against four former credit union employees. A prohibition notice is used for those who have been convicted of a crime of dishonesty, such as theft or embezzlement.
Allennie Naeole, a former employee of the now liquidated First Hawaiian Homes Credit Union in Hoolehua, pleaded guilty to conspiracy to commit embezzlement and identity theft. The NCUA liquidated First Hawaiian in December 2015.
Naeole along with Janell Purdy, the only other permanent employee of the credit union, agreed to embezzle more than $1 million from June 2008 to December 2015 from First Hawaiian, according to the U.S. Attorney’s Office for the District of Hawaii. Naeole ran the credit union while Purdy was the teller and customer service representative.
They spent the money on personal expenses, including on trips and credit card, mortgage and car payments, according to the U.S. Attorney. Their embezzlement directly resulted in the credit union’s collapse, according to the U.S. Attorney.
Naeole was sentenced to seven years in prison and three years of supervised release. She was ordered to pay more than $1 million in restitution.
Melody Camba, who worked at the $21 million-asset Independent Employers Group Federal Credit Union of Hilo, Hawaii, pleaded guilty to embezzlement. Camba was sentenced to two years in prison, five years of supervised release and was ordered to pay roughly $309,000 in restitution.
Stanley D. Hayes, a former employee of Valley State Employees Credit Union in Saginaw, Mich., pleaded guilty to embezzlement and computer crime. Valley State Credit Union was
Hayes was sentenced to serve up to 20 years in prison and was ordered to pay $709,000 in restitution.
Jane L. Madtson, who worked at the now defunct Grays Harbor Community Hospital Federal Credit Union in Aberdeen, Wash., pleaded guilty to theft. Madtson was sentenced to 30 days in prison and 240 hours of community service. She was also ordered to pay about $8,300 in restitution.
Additionally, the NCUA issued one prohibition order, which is used when the agency exercises its own authority to ban a person.
Amy Simon, who had ties to the now shuttered South Jennings Catholic Federal Credit Union in Jennings, La., agreed to a prohibition order and to comply with all of its terms to settle the NCUA board’s claims against her.
