Five former credit union workers – including two former chief executives, and three from the same credit union – were prohibited from further service at any federally insured depository institution, the federal credit union regulator said Tuesday.
The National Credit Union Administration (NCUA) said that in September, the two former CEOs consented to the prohibitions. Jennifer Head, former CEO of MSD Federal Credit Union (FCU) in Louisville, Ky., and Tammy Kirkpatrick, former CEO of Modern Employees Federal Credit Union (MEFCU) in Owensboro, Ky., were banned.
The agency alleged that Head, between January 2000 and June 2022 when she was chief executive, “engaged in a prolonged scheme to defraud MSD’s member funds, including using her access to a member’s account in her role as CEO to make unauthorized withdraws.”
“Respondent directed the funds from her unauthorized withdraws to her own accounts for her personal benefit,” NCUA claimed. “Respondent further abused her position as CEO to direct a member’s share statements to a different address from the member’s address. Respondent further destroyed or otherwise prevented discovery of the above member’s records to conceal her unauthorized withdrawals. Respondent’s fraudulent activities provided a personal benefit and caused MSD significant financial loss.”
Kirkpatrick, formerly a 24-year worker at MEFCU who rose the ranks from a teller, allegedly engaged in “misconduct for her personal financial benefit,” NCUA said. The agency claimed that, from at least May 2017, through June 2022, she allegedly altered credit union records to conceal her removal of cash from teller drawers and the credit union vault. NCUA said a review of MEFCU records revealed her actions totaled to more than $9,500 in losses to the credit union.
Two other former workers at MEFCU also consented to prohibitions, NCUA said. The agency alleged that Jessica Koch, from at least October 2018 through June 2022, allegedly recorded incorrect totals of mutilated funds and coins in her teller drawer to conceal the removal of cash for her personal use. NCUA contended that its review of MEFCU records revealed her alleged actions totaled to more than $11,000 in losses to the credit union.
The agency also claimed that Donna Bland, also formerly of MEFCU, in her 13-year career as a teller at the credit union (ending in 2022), also allegedly recorded incorrect totals of mutilated funds and coins in her teller drawer to conceal the removal of cash for her personal use. NCUA said its review found her alleged actions totaled to more than $39,000 in losses to the credit union.
Meanwhile, the agency said aformer Utah credit union worker is prohibited from further service at any federally insured depository institution after being convicted of “unlawful acquisition, possession, or transfer of a financial transaction card.”
NCUA said LaMarcus Tinker earned the prohibition after being convicted in Utah state court. He is a former employee of American United FCU in West Jordan, Utah. Tinker, NCUA said, was convicted of three counts of the charge. “Your conviction was the result of your misconduct” at the credit union, NCUA wrote to Tinker.
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