Ex-CEO Jailed For Cover-Up Of InsiderLoan Scheme

January 09, 2006, 1:00 a.m. EST 1 Min Read

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AMARILLO, Texas - (10/09/06) The former president ofBurlington Northern Santa Fe CU was sentenced to more than twoyears in jail Friday for lying to investigators probing allegationsthat she and a former employee covered up $127,000 in insider loansto her family. Barbara Dunn pleaded guilty in September to makingfalse statements to a federal credit union. She was charged withmaking a false report of delinquent loans. Dunn was sentenced to 27months in federal prison and ordered to pay the credit union$127,000 in restitution. Prosecutors said Dunn ordered an employeeto change due dates on outstanding loans extended to Dunn and herfamily in order to mislead NCUA investigators by showing falselythat the loan payments were up to date, when, in fact, they weredelinquent. The employee, Sarah Lockwood, pleaded guilty Thursdayto making false statements to a federal agency.

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