NCUA bans six in latest round of prohibition orders

The National Credit Union Administration issued six notices of prohibition to people who have been convicted of crimes of dishonesty and are now banned from participating in the affairs of any federally insured financial institution.

They are:

Fuataina Lamau Afutiti, the former president and CEO of Veterans Health Administration Credit Union in Detroit, Mich., who pled guilty to charges of criminal enterprise racketeering and embezzlement. Afutiti received 30 months to 20 years imprisonment and ordered to pay restitution in the amount of $1,290,000.

According to the State of Michigan Attorney General’s office, Afutiti stole about $2.3 million from the credit union for her personal use between 2012-2016. She allegedly used the illegal proceeds to purchase luxury cars, a motorhome and to pay for vacations.

In March 2016, the State of Michigan Department of Insurance and Financial Services liquidated the credit union. Its members, assets, loans and shares were immediately assumed by Public Service Credit Union, now a $239 million institution based in Romulus, Mich.

Kristen E. Amos, a former employee of Local 50 Plumbers & Steamfitters Federal Credit Union, an $8.6 million institution based in Northwood, Ohio, who pled no contest to charges of petty theft. Amos received one year of probation and was ordered to pay a fine of $250 and restitution in the amount of $6,000.

Tamela Suzanne Bordelon, a former employee of Eagle Louisiana Federal Credit Union, a $111 million institution based in Baton Rouge, La., who pled guilty to a charge of theft. Bordelon was sentenced to a 10-year suspended jail term, five years’ supervised probation and was ordered to pay restitution in the amount of $34,865.81.

Mark A. Jesse, a former employee of Menasha Employees Credit Union of Menasha, Wisc., who pled no contest to the charge of theft. Jesse was sentenced to 90 days in jail and three years’ probation.

According to local media reports, Jesse was president of the credit union and was charged with stealing almost $50,000. He was fired in September 2013 for "gross misconduct." The thefts were discovered after Community First Credit Union completed its merger with the Menasha CU in August 2013. Community First is now a $2.6-billion institution based in Appleton, Wisc.

Mayty Lee, a former employee of Affinity Federal Credit Union, a $1.9-billion institution based in St. Paul, Minn., who pled guilty to the charge of theft. Lee was sentenced to one day in jail, ten years’ probation and was ordered to pay restitution in the amount of $99,660.

Phillip Webb, a former employee of St. Paul Postal Employees Credit Union in St. Paul, Minn., who pled guilty to mail fraud. Webb was sentenced to a year and three months in jail, three years’ supervised probation and was ordered to pay restitution in the amount of $169,932.46.

According to local media reports, Webb worked as the manager of network services at the credit union and engaged in a scheme to cheat computer parts manufacturer Cisco Systems Inc. out of about $388,000. From June 2007 to October 2009, Webb falsely notified Cisco Systems that parts of the credit union’s computer systems were faulty, received replacement parts and subsequently sold the replacement parts online, while returning cheap second-hand units to Cisco in place of the allegedly defective parts.

In 2014, the credit union changed its name to Ideal CU, which is now a $650 million institution based in Woodbury, Minn.