NCUA Bans Former CU CEO Aranjo after Embezzlement Conviction
Former D. Edward Wells FCU President/CEO Carol Aranjo, who in 2008 was convicted of 42 criminal counts including embezzling $1.5 million, has been banned forever from participating in the affairs of any federally insured institution, the NCUA announced today.
Aranjo, who was also convicted of bank fraud and filing false tax returns, is serving a 54-month prison sentence and been ordered to pay $1.4 million in restitution.
She had been chairman of the National Federation of Community Development Credit Unions.
Aranjo's husband, Alphonso Smith, was a convicted of 10 similar charges and acquitted of three. The couple used the money to buy a Mexican time-share, take trips and pay personal debts.
The NCUA took control of the credit union in 2003 and subsequently liquidated it.
The agency also announced that Donna Kay Gainer, who pleaded guilty of embezzling between $30,000 and $70,000 from Tinker FCU has also been banned from working at a federally insured financial institution.
Gainer, who entered the plea in January 2009, was sentenced to five years of supervised release and to pay $32,789.71