NCUA issues six prohibition orders for June

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

*Eva Barroso, a former employee of Oklahoma Central Credit Union, a $549 million institution based in Tulsa, Okla., plead guilty to charges of bank fraud and tax evasion. Barroso was subsequently sentenced to 27 months in prison, five years’ supervised release and was also ordered to pay $238,117.42 in restitution.

According to the U.S. Attorney’s Office, Northern District of Oklahoma, from July 2009 to March 2012, Barroso fabricated at least three false loans in the name of nominee entities and individuals without their knowledge or authorization. Barroso also admitted making various material false representations in obtaining these loans. She then used the proceeds of these loans for her own personal benefit, including making ATM withdrawals at various casinos. Barroso also used some of the money to make payments on prior loans.

Moreover, in 2010, Barroso willfully evaded a “large part” of income tax by failing to report to the Internal Revenue Service a total of $152,098.13 which was the money she fraudulently obtained from the scheme.

*Theresa J. Blageo, a former employee of Eaton Employees Credit Union, a $2.5 million institution based in Eden Prairie, Minn., 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.

*Allison M. Bushart, a former employee of Patelco Credit Union, a $5.7 billion institution based in Pleasanton, Calif., plead guilty to charges of misapplication and embezzlement of credit union funds and making and subscribing a false tax return. Bushart was sentenced to 33 months in prison, three years’ supervised release and also ordered to pay $521,661 in restitution.

*Linda A. Holland, a former employee of Your Choice Federal Credit Union, an $11.9 million institution based in Altoona, Pa., entered into an Accelerated Rehabilitative Disposition program with respect to charges of theft by deception and receiving stolen property. Holland was also ordered to complete community service and pay restitution in the amount of $56,774.34.

*Stephany Denler Moreno, a former employee of Communication Federal Credit Union, a $1.1 billion institution based in Oklahoma City, plead guilty to nine counts of credit union embezzlement and three counts of false statements. Moreno was sentenced to five years’ of supervised release and was also ordered to pay $39,100 in restitution.

According to the US Attorney’s Office, Western District of Oklahoma, Moreno worked as a teller at the credit union and on nine different dates from July 2011 through December 2012, made unauthorized cash withdrawals on various accounts of a credit union member identified as “B.L.” -- and used the money for her own purposes. Moreno also forged signatures on three cash withdrawal receipts in order to make unauthorized withdrawals from B.L.’s accounts – these withdrawals totaled $39,100.

*Karen Schenck, a former officer manager/CEO of Corry Area Federal Credit Union, a $4.7 billion institution based in in Corry, Pa., plead guilty to charges of embezzlement of credit union funds.

Schenck was sentenced to two years in prison, five years’ of supervised release and was ordered to pay $741,362.82 in restitution.

According to the U.S. Attorney’s Office, Western District of Pennsylvania, Schenck embezzled the aforementioned funds from January 2008 through August 2015 in a variety of ways. For instance, she made $268,402.25 in unauthorized or fictitious loans in the names of her family members, the proceeds of which she used for her personal benefit or to conceal out of balance conditions in various general ledger accounts. Among other criminal acts, Schenck also made over 60 fictitious deposits into her own account or the accounts of family members totaling approximately $317,897.00, which she used for her personal benefit.