A former office manager will be sentenced in July after admitting she stole $34,000 in cash from the vault of a failed Louisiana credit union.

Gail Teague, who worked at the $9.2 million Ochsner Clinic Federal Credit Union in New Orleans, pleaded guilty to theft of bank funds in U.S. District Court in New Orleans.

According to court documents, Teague agreed to testify the against former credit union President Jacqueline Ray, who allegedly stole more than $1 million.

“The government's proof would be presented by agents of the FBI and NCUA and auditors and employees of the credit union,” court documents read.

On June 28, 2013, the NCUA liquidated the $9.25 million Ochsner Clinic FCU of New Orleans, saying in a release it had determined the credit union was insolvent and had no prospect for restoring viable operations. The $307 million ASI Federal Credit Union of Harahan, La., immediately assumed Ochsner Clinic FCU's members, deposits and loans.

Court documents reveal that during the course of an NCUA audit, Teague admitted to stealing $34,000 by creating a fraudulent loan.

On May 17, 2013, more than a month before NCUA announced Ochsner Clinic FCU's liquidation, Teague signed a hand-written confession acknowledging the theft after auditors interviewed her.

In January 2013, Teague created a fictitious loan in another person's name. The loan was disbursed in the form of an official credit union check made payable to a local auto dealership. The dealership was not identified by federal prosecutors.

After the check was re-deposited into the credit union, Teague withdrew $34,000 in cash from the vault, according to court documents.

Teague's sentencing hearing is scheduled for July 15.

Instant Insights /

Criminal Office Manager Scheduled for Sentencing

Related Stories

Recommended For You