NCUA bans 4 in October prohibition orders

The National Credit Union Administration on Wednesday issued its October prohibition orders, barring four individuals from having anything to do with the affairs of any federally insured financial institution.

The four offenders are:

• Christine Darley, a former employee of the now inactive Panhandle Cooperative Federal Credit Union of Scottsbluff, Neb., who pleaded guilty to the charge of bank fraud. Darley was sentenced to time served, five years’ supervised release and ordered to pay more than $139,000 in restitution.

• Krista Putman, a former employee of the now inactive G.H. Woodworkers Federal Credit Union of Aberdeen, Wash., who pleaded guilty to the charge of theft. Putman was sentenced to 14 months in prison and ordered to pay more than $335,000 in restitution.

• Savannah Yang, a former employee of Affinity Plus Federal Credit Union of Saint Paul, Minnesota, who pleaded guilty to the charge of embezzlement. Yang was sentenced to 21 months in prison, one year supervised release and ordered to pay more than $285,000 in restitution.

• Janell Purdy, a former employee of the now inactive First Hawaiian Homes Credit Union of Hoolehua, Hawaii, who pleaded guilty to the charge of conspiracy to commit embezzlement. Purdy was sentenced to 50 months in prison, three years’ supervised release and ordered to pay nearly $950,000 in restitution.

According to the U.S. Attorney’s Office, District of Hawaii, between June 2008 and December 2015, Purdy and co-conspirator Allennie Naeole embezzled more than $1 million from the credit union. During that time, Purdy and Naeole were the CU’s only two permanent employees and were responsible for all the daily banking activities, including maintaining books and records. Among other things, Purdy and Naeole are alleged to have overdrafted accounts in violation of bank policies and issued unauthorized checks from the credit union’s financial accounts. They concealed the embezzlement by creating fictitious deposit and loan entries in the books and records. As a result of the embezzlement, the credit union became insolvent and was shut down. The loss and liquidation expenses related to Naeole and Purdy’s conduct exceeded $2 million.

Naeole was subsequently issued a prohibition order in September 2018.