Credit union regulator prohibits two from further service; ends C&D against MI institution

Two former workers at credit unions in Massachusetts and Pennsylvania, respectively, were prohibited from working in a credit union or any other federally insured depository institution this month, the federal credit union regulator said Friday.

The National Credit Union Administration (NCUA), in a release, said it had prohibited Rachel Gaudreau, formerly of Westport Federal Credit Union (FCU) in Westport, Mass., and Shannon Rider, a former employee of Erie Times FCU in Erie, Pa.

As alleged by the NCUA, Gaudreau, while working at the credit union, drew an unauthorized credit union check for $7,565 and forged the authorization signature on the check. The credit union suffered a monetary loss of approximately $7,565 as result of the actions, the NCUA said.

Rider, the NCUA alleged, while working at the credit union, “aided and abetted an accomplice in a check kiting and debit fraud scheme using her personal accounts and her employee access at ETFCU.” The NCUA charged that her conduct caused the credit union to “suffer significant financial loss.”

The NCUA also said Friday that it has terminated a cease-and-desist order against Live Life FCU of Fraser, Mich. The agency noted the order was issued in 2021; it revolved around the credit union’s compliance with Treasury’s Financial Crimes Enforcement Network’s (FinCEN) requirements for marijuana-related businesses (“MRB”). The agency said the credit union has fulfilled the order’s terms and requirements.

NCUA Prohibits Two Individuals; Terminates Cease and Desist Order