Virginia Woman Pleads Guilty to $2.5 million CUNA Mutual Scam

ROANOKE, Va. – A former member representatives for CUNA Mutual Life Insurance Co. is expected to draw a prison sentence after pleading guilty to draining as much as $2.5 million from customers of the credit union insurer. Monica Yates, 40, pleaded guilty to mail fraud and money laundering charges and is scheduled to be sentenced July 18. After leaving CUNA Mutual Life in May 2006, Yates convinced as many as 18 policyholders to terminate their longterm CUNA Mutual financial products, and invest them in a fictitious variable annuity. She prepared phony account statements to show the victims the funds were being invested and earning monthly interest. She also failed to tell her victims that termination of the CUNA Mutual products carried heavy early cancellation fees. She also victimized at least four customers at Merrill Lynch, where she went to work briefly after leaving CUNA Mutual. The funds were all deposited into Yates’ own account at Bank of America. Actual losses to the victims, not counting early cancellation fees and lost interest, was $1.3 million.