CAMDEN, N.J. – A former assistant vice president of loss prevention for South Jersey FCU, in Deftord Township, on Friday pleaded guilty to her scheme to defraud the credit union of up to $400,000.
Nora Phelps, 48, admitted that since at least 2005, she devised and implemented fraudulent methods to transfer credit union funds from delinquent loan accounts into accounts she controlled.
One of these methods consisted of diverting money collected by check or cash primarily from credit union members making payments on charged-off loans by depositing the funds into the accounts of some of Phelps' family members, instead of posting the funds to the appropriate members' loan accounts.
Phelps also removed funds from the credit union's general ledger account, caused the funds to be deposited into the accounts of her family members, and then arranged for the funds to be transferred into her own account.
