The NCUA has issued a ban against a former employee of the $1billion SELCO Community Credit Union in Eugene, Ore., after she wasconvicted of stealing $146,583 from the institution over a periodof eight years to feed her gambling addiction.

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Lenora Jane Colburn, a former supervisor and assistant managerof two Eugene branches until she was fired in May 2011, wassentenced to a prison term, five years of supervised release andordered to pay restitution, the NCUA said in a statement onThursday.

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However, according to The Register-Guard newspaper, U.S. District Judge Michael Hogansentenced Colburn to a year of home detention in January.

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The Eugene newspaper also said Colburn was a diagnosedpathological gambler and was ordered to serve 600 hours ofcommunity service and may not enter a casino or any other placewhere gambling is offered during her five years of supervisedrelease.

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She had been employed at the credit union for 24 years and used her position to conceal thethefts by creating bogus cash transactions, rigging internal auditsand manipulating balances in cash drawers and vaults, the newspapersaid.

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The article said the judge said he understood that credit unionmanagers, who testified that her actions had caused “hugecollateral damage” to their organization, had asked for a prisonsentence and would be upset by his ruling, and that he would meetwith them to explain his reasons.

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Violation of an NCUA prohibition order is a felony offensepunishable by imprisonment and a fine of up to $1 million.

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