Two former credit union employees prohibited by regulator in April; another earns prohibition after sentence for fraud

Two former credit union workers were prohibited in April from ever serving again at a credit union (or any other federally insured financial institution), and a third former employee received a notice of prohibition after being convicted of fraud, the federal credit union regulator said Friday.

The National Credit Union Administration (NCUA) said Mark Colley, a former employee of First Oklahoma Federal Credit Union (FCU) of Tulsa, Okla., and Barbara Diane Nelson, a former employee of Gerber FCU in Fremont, Mich., were prohibited from further service at a credit union or bank.

According to the agency, Colley – while working at the credit union – advanced due dates on multiple loans on multiple occasions to extend the time borrowers had to make loan payments; advanced funds from closed end loans and transferred those funds to member accounts for the purposes of making payments on those same or other loans; and caused reports to be submitted to both the credit union’s board of directors and the agency containing understated loan delinquency figures. His actions, the agency alleged, harmed the credit union and benefited him.

Nelson, the NCUA said, embezzled funds from Gerber FCU between November 2011 and February 2019, while serving as an accounting supervisor at the credit union for her personal gain. She subsequently pleaded guilty to embezzlement in state court and was sentenced in December 2021.

Meanwhile, the NCUA said Indira Mohabir, a former employee of Western FCU in Torrance, Calif., earned a notice of prohibition after she was sentenced in January in U.S. District Court for the Central District of California on several charges of financial institution fraud in connection with her employment at the credit union.

NCUA Issues Two Prohibition Orders, One Notice in April 2022

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