CU Exec Convicted Of $1.1M Embezzlement
LOVES PARK, Ill.-The former cards services coordinator at Rock Valley FCU pleaded guilty to stealing $1.1 million from the CU over the past 15 years by manipulating the credit card balances of member accounts.
Lisa Farel, 40, worked for the $77-million CU until she resigned in July. She stole the money by overstating credit card balances and pocketing the difference. A CU official said it was as if the loan portfolio was overstated by $1.1 million.
The CU said no member lost any money because of the scheme and they will seek reimbursement from their insurer.
Tiny Generations FCU Hit By Visa Debit Card Scam
LA PORTE, Ind.-Generations FCU has shut down at least two dozen Visa debit cards after members reported unauthorized charges of hundreds of dollars, most from out of state locations.
Joyce Christianson, a teller who handles the cards program at the $8-million CU, said they believe the members' account information was skimmed at the point-of-sale somewhere and was used to manufacture counterfeit cards. "We don't know if it's an inside job or not," Christianson told Credit Union Journal.
Some of the charges are at the Giant Eagle supermarket chain in Ohio, while others are at gas stations in Ohio, Pennsylvania, New York, New Jersey and Indiana.
So far, 19 members have been hit with at least $6,000 in fraudulent transactions.
The credit union has blocked those cards and several others from members expressing concerns about their accounts, said Christianson.
This is the second card scam to hit Generations in a matter of months, following a hacking at First Source Bank in Indianapolis in June that affected numerous credit unions and banks that use the bank's ATM network.
Sikorsky Wins Grant For Financial Ed
OXFORD, Conn.-Sikorsky Financial CU is developing a financial literacy course for students at Oxford High School, with the help of a $25,000 grant from the state Department of Education.
The state funds will pay for equipment, instructional supplies, field trips to financial districts in New York and Boston and professional development for staff.
As part of the program, the Stratford-based credit union has agreed to open a full service branch in the high school store and to have it open on Fridays.
Iraq War Vet Wins Home Makeover
LOVELAND, Colo.-Addison Avenue FCU has chosen the family of an Iraq War veteran for a home makeover valued at $20,000.
The winner of the contest is Dennis Herbst, a disabled U.S. Army veteran who suffers from severe post traumatic stress disorder and traumatic brain injury after 16 years in the service. The family has had to remodel the house themselves to make it more appropriate for Dennis's disability.
Volunteers organized by the Palo Alto, Calif., credit union worked with the Herbst family to renovate the house with free painting, landscaping, planting, and additional activities.
The project was initiated through a partnership with United We Paint, a volunteer program that benefits schools, non-profits and low-income homeowners.
Branch Opens With Grant Contest
DUBLIN, Calif.-Tech CU is inviting area residents and non-profit groups to submit ideas for a $3,000 community improvement grant in conjunction with the opening of its new branch here.
To encourage community involvement, the credit union also is encouraging people to express their views on the proposals through Oct. 20.
All comments and reviews will be taken into consideration as part of the selection process.
The $1.4-billion San Jose-based credit union conducted a similar contest last year when it opened a branch in the town of Campbell.
No Business At This 'Drive Thru'
ROGERS CITY, Mich.-A 66-year-old man was uninjured after he drove his pick-up truck through the front of the Onaway CU branch here, giving a new meaning to the term "drive-thru."
No one was injured, but the crash caused enough damage to the building to shut the branch for at least a day.
The accident occurred when the man unintentionally stepped on the gas when he reached for the brake, police said. The truck didn't penetrate very far into the building, but pieces of brick and the furniture inside the building showered the counter and the customer waiting area.
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