Former CU employee earns prohibition after converting $20k in funds for own use

A former employee of an Orange, Texas, credit union was prohibited last month from serving at a federally insured financial institution after allegedly pilfering $20,000 from the institution, the federal regulator of credit unions said.

The National Credit Union Administration (NCUA) said it issued the prohibition against Linda D. Landry, a former “institution-affiliated” party of Southeast Texas Employees Federal Credit Union, in Orange. The agency said that Landry consented to the issuance of the prohibition order, dated May 31, and agreed to comply with its terms. She also agreed to settle and resolve the agency’s claims against her in the consent order.

According to the order, while an employee at the credit union, Landry (without authorization, the order notes) allegedly converted funds of the credit union for her own use by withdrawing $20,000 from the credit union’s bank account and not depositing the cash into the credit union’s vault.

As is typical with many prohibition orders, Landry is banned from serving at a federally insured financial institution in any capacity. However, if she receives written consent from the NCUA and other federal financial institution regulator supervising an institution (if not a credit union), the prohibition would “cease to apply” for that institution.

NCUA June 28 enforcement order