VP-Loss Prevention Causes Loss

CAMDEN, N.J. - A former assistant vice president of loss prevention for South Jersey FCU pleaded guilty to her scheme to defraud the credit union of up to $400,000. Nora Phelps, 48, admitted that since at least 2005 she devised and implemented fraudulent methods to transfer CU funds from delinquent loan accounts into accounts she controlled. One of these methods consisted of diverting money collected by check or cash primarily from members making payments on charged-off loans by depositing the funds into the accounts of some of Phelps’ family members, instead of posting the funds to the appropriate members' loan accounts. Phelps also deposited funds from the CU's general ledger account into family accounts, and then transferred the funds.(c) 2008 The Credit Union Journal and SourceMedia, Inc. All Rights Reserved.http://www.cujournal.com http://www.sourcemedia.com