In less than a month, a second fraud case involving a Hawaiian creditunion is being prosecuted against a former president/CEO and aformer employee who allegedly embezzled more than a $1 million.

On Monday, Janell Purdy, 40, pleaded not guilty to one count ofconspiracy and six counts of embezzlement in U.S. District Court inHonolulu. She worked as a customer service representative andteller at the $3.1 million First Hawaiian Homes Federal CreditUnion in Hoolehua, on the island of Molokai.

Allennie Naeole, 55, was indicted on one count of conspiracy,six counts of embezzlement and one count each of making falseentries and aggravated identity theft. Naeole, who was the creditunion's president/CEO, has not entered a plea as of Tuesday,according to court records.

From 2007 to 2015 when the NCUA liquidated the credit union,Naeole and Purdy allegedly wrote checks from the credit union'sfinancial accounts to pay for the personal expenses of Naeole andher family members, according to the indictment. They allegedlywithdrew and spent more money from personal credit union accountsin their names and in the names of family members than wasavailable in deposits, which created negative balances.

They concealed the negative balances by altering the books andrecords that showed fake deposits. They also covered up thenegative balances by making it appear in the books that thebalances were part of an outstanding loan in another person's namethat was payable to the credit union even though there was no loanauthorized or issued. Naeole and Purdy also allegedly cookedthe books to make it appear as if the loan was being paid off, butin reality there were no loan payments being made, according tofederal prosecutors.

Naeole allegedly made false statements, prepared bogus documentsand delayed production of documents to the board of directors,including quarterly financial reports to the NCUA from September2012 to September 2015, according to court documents.

She also allegedly submitted a false financial report toan NCUA examiner in September 2014.

What's more, in September 2015, the former CEO registered,created and used an email account that falsely purported to be fromthe credit union's third-party processor to communicate withherself and the NCUA examiner, federal prosecutors alleged.

From 2012 to September 2015, the credit union reported zerodelinquent loans and zero net charge offs, according to its NCUAfinancial performance reports.

This First Hawaiian Home FCU case is the second alleged fraudscheme that involved Hawaiian credit unions.

In October, federal prosecutors indicted former Honolulu PoliceChief Louis Kealoha and his wife, Katherine Kealoha, a formersupervisor attorney for the Honolulu prosecutor's office, whoallegedly carried out a $4 million fraudulent mortgage, refinancingand line of credit scheme that victimized twocredit unions and three banks. The couple was charged with 20counts of bank fraud, criminal conspiracy, obstruction of justice,making false statements to a federal officer and aggravated ID theft.