CEO Convicted, Banned After Losing Stolen Funds to Investment Scam
The NCUA on Friday issued orders prohibiting two individuals from participating in the affairs of any federally insured financial institution, including one former credit union CEO who had the money she defrauded stolen from her.
Joyce Judy, former president of the $40 million Arkansas Employees FCU of Little Rock, Ark., was convicted of bank fraud and sentenced to 26 months in prison, three years supervised release and ordered to pay restitution in the amount of $500,000.
According to Arkansas Business, a Little Rock-based publication, Judy stole $500,000 from a member who wanted to invest it in a certificate at the credit union. She used the money, along with another $500,000 she obtained by borrowing against her home and vehicles, to invest in the building of a race track. However, that investment was a fraud, and the money was wired out of the county without Judy’s permission.
Meanwhile, Kimberly Unger, a former loan officer at the $24 million Spencerport FCU of Spencerport, N.Y., consented to the issuance of a prohibition order to avoid the time, cost and expense of administrative litigation.
NCUA enforcement orders are available online and for inspection at NCUA’s Alexandria, Va. headquarters.