NCUA bans six former credit union employees

first_img 15SHARESShareShareSharePrintMailGooglePinterestDiggRedditStumbleuponDeliciousBufferTumblr continue reading » Six former credit union employees, including two CEOs, a commercial services manager, a teller and a senior member service representative were banned from participating in the affairs of a federally insured financial institution, according to a prepared statement Friday from the NCUA.Karen Schenck, the former president/CEO of the $4.6 million Corry Area Federal Credit Union in Corry, Pa., pleaded guilty to embezzlement. She was sentenced in May to two years in prison, and five years of supervised release. Schenck was also ordered to pay $741,362 in restitution.Theresa J. Blageo, the former president/CEO of the $2.5 million Eaton Employees Credit Union in Eden Prairie, Minn., consented to a prohibition order and agreed to comply with all of its terms to settle the NCUA’s claims against her, which were not specified by the federal agency. Although Blageo was not convicted of any crime, federal court records show she declared Chapter 13 bankruptcy along with her husband in December 2009 while she was president/CEO of the credit union. They had more than $600,000 in debts, according to court records.  The bankruptcy case was discharged in April 2015. Blageo, who became the CEO in September 2002, left the credit union in January 2016.Allison M. Bushart, a former teller at the $5.6 billion Patelco Credit Union in Pleasanton, Calif., who stole from senior citizens, including a few who had dementia, pleaded guilty to embezzlement and submitting a false federal tax return. Bushart was sentenced to two years and seven months in prison in March and three years of supervised release. She was also ordered to pay $521,661 in restitution.last_img read more

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