2 former employees from IN, NY credit unions barred from future FI service

Two former credit union employees, including one from a large, now-defunct credit union formerly involved in the taxi medallion market, have been barred by the federal credit union regulator from any future involvement in the affairs of a federally insured financial institution, the agency said in a release Friday.

Michelle Cain, a former employee of Business and Industrial Federal Credit Union in Columbus, Ind., pleaded guilty to the charge of theft, NCUA said. Cain was sentenced to one year in prison, two years’ supervised release, and was ordered to pay $466,122.27 in restitution, the agency said.

Mitchell Reiver, identified in the order as a former employee, board member and institution affiliated party of Melrose Credit Union in Briarwood, N.Y., agreed and 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 him, NCUA said. Reiver was required to pay $77,166.45 in restitution, the order shows.

[Melrose Credit Union was liquidated Aug. 31; it had suffered heavy losses due to its involvement in the failing taxicab medallion market.]

Violation of a prohibition order is a felony offense punishable by imprisonment and a fine of up to $1 million.

NCUA Issues Prohibition Notices

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