NCUA bans 4 former credit union employees

The National Credit Union Administration issued one prohibition order and three prohibition notices in the month of August. Consequently, the following individuals are hereby blocked from participating in the affairs of any federally insured financial institution:

Chelly Ann Callaway, a former employee of the $48 million Kellogg Midwest Federal Credit Union of Omaha, who pleaded guilty to the charge of theft. Callaway was sentenced to six months in prison, four years’ supervised release, and was ordered to pay $38,374 in restitution.

Taren Dawson, a former employee or institution-affiliated party of the $3.5 million People’s First Federal Credit Union of Birmingham, Ala., who agreed and consented to the issuance of a prohibition order and agreed to comply with all of its terms to settle and resolve the NCUA board’s claims against her.

Jonathan Wade Dunning, a former employee of the now inactive Birmingham Financial Federal Credit Union in Birmingham, Ala., who was found guilty of the charges of wire fraud, bank fraud, conspiracy, and money laundering. Dunning was sentenced to 18 years in prison, five years’ supervised release, and was ordered to pay more than $13.5 million in restitution.

According to the U.S. Attorney’s Office, Northern District of Alabama, Dunning, who had served as chief executive of two non-profit health clinics devoted to the poor and homeless, funneled millions in federal grant money to private companies he formed to contract with the clinics.

A federal jury convicted Dunning on 98 of 112 charged counts.

Dunning served as president, board chairman and loan officer of Birmingham Financial FCU.

Nita Rae Nirschl, a former employee of the now inactive Parsons Pittsburg Credit Union in Parsons, Kan., who pleaded guilty to the charges of embezzlement, money laundering, and attempting to evade taxes. Nirschl was sentenced to five years in prison, five years’ supervised release, and was ordered to pay more than $10 million in restitution.

According to the U.S. Attorney’s Office, District of Kansas, Nirschl embezzled $5 million from the credit union, withdrawing money from the assets of the credit union and depositing the funds into accounts she controlled. She used the stolen money to buy a car, a house and other items.