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

Lenora Jane Colburn, a former supervisor and assistant manager of two Eugene branches until she was fired in May 2011, was sentenced to a prison term, five years of supervised release and ordered to pay restitution, the NCUA said in a statement on Thursday.

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

The Eugene newspaper also said Colburn was a diagnosed pathological gambler and was ordered to serve 600 hours of community service and may not enter a casino or any other place where gambling is offered during her five years of supervised release.

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

The article said the judge said he understood that credit union managers, who testified that her actions had caused “huge collateral damage” to their organization, had asked for a prison sentence and would be upset by his ruling, and that he would meet with them to explain his reasons.

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

Instant Insights /

NCUA Bans Fired Gambler Over $146,583 Theft From SELCO

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