Former CU employee gets 10 years in prison, $14M in restitution

The National Credit Union Administration has banned five former credit union employees from participating in the affairs of any federally insured financial institution, including one who was sentenced to 10 years in prison and more than $14 million in restitution. Prohibition orders were filed against:

· Theodore J. Longust, a former employee of Scott Credit Union in Edwardsville, Ill., pleaded guilty to the charge of fraud and misapplication of credit union funds. Longust was sentenced to 10 years in prison, three years’ supervised release and was ordered to pay more than $14.1 million in restitution.

· Tina Marie Galloway, a former employee of HealthCare United Federal Credit Union in Baltimore, pleaded guilty to the charge of felony theft. Galloway received a suspended sentence, 18 months’ supervised release and was ordered to pay a $1,000 fine.

· Kathleen Gramlich, a former employee of Ohio County Public Schools Federal Credit Union in Wheeling, W. Va., pleaded guilty to the charge of theft. Gramlich was sentenced to one day in prison, five years’ supervised release and was ordered to pay $156,342.60 in restitution.

· Maureen Hall, a former employee of Blue Federal Credit Union in Cheyenne, Wyo., pleaded guilty to the charge of embezzlement. Hall was sentenced to one day in prison, three years’ supervised release and was ordered to pay $5,180.63 in restitution.

· Virginia Ellen Mecham, a former employee of Westmark Credit Union in Idaho Falls, Idaho, pleaded guilty to the charge of embezzlement. Mecham was sentenced to two months in prison, three years’ supervised probation and was ordered to pay $23,625 in restitution.

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Financial crimes Embezzling Payment fraud NCUA
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