A former credit union employee, sentenced to 21 months infederal prison for embezzlement, targeted accounts of 23 memberswho were either ill, near death or who lived out of town to stealmore than $300,000 over four years, according to courtdocuments.

Carla Welborn, who worked at the Veterans Administration MedicalCenter branch of the $7 million Credit Union of Leavenworth Countyin Lansing, Kan,, was also ordered by a U.S. District Judge KathrynVratil in Kansas City on July 30 to pay restitution of $28,002 tothe credit union and $329,702 to the CUNA Mutual Group.

The documents did not reveal Welborn's title at the creditunion.

CULC, which has 1,650 members, was chartered in 1956 to serveveterans, though it also serves businesses, government agencies andindividuals in Leavenworth County.

Court documents show Welborn befriended many members andperformed extra services for them, such as reconciling accounts andhelping them pay bills, even though she was not required by thecredit union to provide these services.

In addition to targeting accounts of members who were ill, neardeath or who lived out of town, Welborn also targeted accounts ofmembers that she knew were not receiving monthly balancestatements.

Federal prosecutors said Welborn would redirect some creditunion members' mailed statements to the bank so account holderswould not notice their accounts were missing funds. And whenaccount holders wanted statements, Welborn would mail themfraudulent statements. To keep track of the stolen money, she kepta handwritten ledger with amounts taken from each account.

Eventually, according to court documents, Welborn would writechecks payable to the credit union's bank (Country Club Bank) ifthere was not enough cash on hand at the credit union for her tosteal. Country Club Bank would cash the checks because Welbornwould indicate that the funds would be used to replenish the “pettycash account” at the credit union.

In 2010, when the credit union changed its correspondent bank toMissouri Corporate Credit Union, the “petty cash” replenishmentswent directly to the main office in Lansing. Because Welborn didnot have access to sufficient cash on hand to steal, she begantaking the money out of members' accounts.

Welborn also took money out of the credit union's vault,according to court documents. Although the money in the vault wassupposed to be counted by at least two employees, Welborn had beencovering her tracks by using her son who was working with her atthe VA Medical Center branch.

“Welborn would often tell her son….the vault was counted andthere was no need for him to do it,” court documents state.

Welborn's son has not been charged by federal prosecutors.

When the credit union became aware of the fraud, an accountingfirm was hired to conduct a comprehensive audit, which revealedWelborn stole $304,000 from 23 credit union members from Jan. 1,2009 to Jan. 26, 2012.