Five former credit unions employees, including two CEOS, convicted of embezzlement were banned from participating in the affairs of any federally insured financial institution, the NCUA said Friday.
Theodore J. Longust, a former business relationship manager, was sentenced last November to 10 years for orchestrating a multimillion-dollar fraudulent loan scheme at the $1 billion Scott Credit Union in Edwardsville, Ill. He also was ordered to pay $14.1 million in restitution. Evidence presented during Longust’s sentencing hearing showed that the credit union’s total loss, including criminal and civil losses, amounted to $25.8 million, according to federal prosecutors.
Kathleen Gramlich, the former president/CEO of the $5.1 million Ohio County Public Schools Federal Credit Union, was sentenced to one day in jail in March after pleading guilty to embezzling more than $150,000 over three years from the Wheeling, W. Va.-based cooperative. She was ordered to pay $156,342 in restitution and to serve five years of supervised release.
In November 2015, Tina Marie Galloway, the former president/CEO of the $4.6 million HealthCare United Federal Credit Union, pleaded guilty to embezzling more than $130,000 from the Baltimore-based credit union. She received a suspended sentence and 18 months of supervised release. A local media report said Galloway paid $90,000 in restitution and still owed $40,000. Her husband, Baltimore County Police Sergeant Daniel Galloway, was acquitted last year of charges of theft and conspiring to commit theft with his former CEO wife, according to the Baltimore Sun.
From October 2014 to September 2015, Maureen Hall embezzled $30,657 while working in the accounting department for Warren Federal Credit Union, which is now the $906 million Blue Federal Credit Union in Cheyenne, Wyo. Hall was sentenced to one day in prison, one day credit for time served and three years of supervised release. She repaid the $30,657 that was stolen from the credit union, and she also paid the $5,180 court-ordered restitution that represented the payment from the credit union’s insurance company.
Virginia Ellen Mecham, a former employee of $667 million Westmark Credit Union in Idaho Falls, Idaho, pleaded guilty to embezzlement in January 2013. She was sentenced to two months in prison and three years of supervised probation. She was also ordered to pay restitution of $23,625 that she stole from the credit union.
