ALEXANDRIA, Va. – A former loan officer for Kentucky’s Bluegrass CU, convicted last year in a $165,000 loan fraud, was banned from the industry, NCUA said yesterday.
Crystal Smith, 36, used her position as a loan officer to create fraudulent loans over 18 months starting in October 2006. She created fraudulent loan accounts using Social Security numbers belonging to others, including her own daughter. Smith then used the phony loan accounts as a vehicle to transfer funds to a Bluegrass checking account that she would access with a debit card.
While employed at the credit union, Smith also had access to a money market account held by Bluegrass at City National Bank. Her Social Security number was linked to the account so she could have access to it as part of her normal job duties.
NCUA also banned Becky Hughes, a former chief financial officer at Wiregrass FCU, for opening unauthorized credit cards, which she used to siphon $135,000 from the Dothan, Ala., credit union.
Also banned was Charice Kaahanui, a former employee at Leahi FCU, for stealing $27,000 from the Honolulu credit union.
NCUA also banned: Brenda Alexander and Ana Santana, both former employees at TriCare FCU in Newark, N.J.; Steven Long, a former employee at Citizens FCU, Midland, Texas; Steven Pennington, former manager of merged First Future CU, San Diego; Betty Lee Wing, former vice chairman of New England Lee FCU, Boston; and, Henry Slootmaker, a former employee of Peoples First Choice FCU, Glen Rock, N.J.
