Fraud and embezzlement convictions have sent four former credit union employees to prison, placed two on probation, and resulted in bans against all six from working or volunteering at credit unions, according to a prohibition order from the NCUA on Tuesday.
Cynthia Vaughan, a former employee of Rockland Employees FCU, Spring Valley, N.Y., was convicted of bank fraud. Vaughan was sentenced to 18 months in prison, three years of supervised probation, and ordered to pay restitution in the amount of $150,000.
Vaughan was previously prohibited by the NCUA in 2010 from involvement with any federally insured credit union upon being charged with defrauding Rockland Employees, but now she is prohibited from the affairs of any depository institution following conviction.
Daniel Mahiai, a former employee of Molokai Community FCU, Kaunakakai, Hawaii, was convicted of embezzlement. Mahiai was sentenced to 27 months in prison, five years of supervised probation, and ordered to pay restitution in the amount of $168,280.39.
Jason J. LaPierre, a former employee of Hudson Community Credit Union, Corinth, N.Y., was convicted of grand larceny. LaPierre was sentenced to a minimum of three to nine years in prison.
Nathaniel Ham, a former employee of NY Team Federal Credit Union, Hicksville, N.Y., was convicted of conspiracy to launder money and engage in monetary transactions involving criminally derived funds. Ham was sentenced to 32 months in prison, three years of supervised probation, and ordered to pay restitution in the amount of $1,136,034.
Melinda K. Riddle, a former employee of Leavenworth Teachers & Community Credit Union, Leavenworth, Kan., was convicted of theft. Riddle was sentenced to two years of supervised probation and ordered to pay restitution in the amount of $66,192.22.
Joyce Ann Outlaw, a former employee of Shuford Credit Union, Granite Falls, N.C., was convicted of embezzlement. Outlaw was sentenced to 36 months of supervised probation and ordered to pay restitution in the amount of $5,000.
