ASHLAND, Ky. – A former loan officer at Bluegrass CU was sentenced last week to almost five years ib prison for stealing more than $165,000 from her employer.
Crystal Smith, 36, admitted she 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.
The credit union fired Smith for reasons unrelated to the scheme. But after she was fired, Smith opened a personal savings account at City National. However, through an "administrative oversight," she continued to have access to the credit union’s money market account. Between Aug. 1 and 15 of last year, Smith transferred $77,095 funds from the money market to her personal account on four occasions.
