Jacqueline Ray, who served as president/CEO of Ochsner ClinicFederal Credit Union for nearly 30 years, will be arraigned inJanuary 2016 on a felony charge that she embezzled more than $1million from the failed New Orleans-based cooperative.

In court documents filed by federal prosecutors last week inU.S. District Court in New Orleans, Ray allegedly carried out herscheme from 2007 to May 2013 through 149 fictitious loans that werecreated on 71 fictitious member accounts.

Nearly all of the bogus member accounts were connected to atleast two fake loans, prosecutors said.

While no loan documentation existed on the fake loans, they wereall coded in the OCFCU data process system to prevent account statements frombeing generated, which allowed Ray to conceal her embezzlement,according to court documents.

Funds that were drawn from the fake loans were allegedly stolenthrough checks made payable to the fictitious members, the creditunion or an auto dealership, which was not identified in courtdocuments.

In addition, deposits made using the fake loan funds werefunneled into Ray’s credit union account or the accounts of familymembers. However, Ray controlled the family member accounts,according to court documents.

To cover up the bogus deposits, Ray allegedly posted them as“deposits in transit,” federal prosecutors charged.

Ray’s attorney, Walter Francis Becker Jr. of New Orleans,declined to comment on the case against his client.

On June 28, 2013, the NCUA liquidated the $9.25 million OCFCU stating in a release it haddetermined the credit union was insolvent and had no prospect forrestoring viable operations. The $307 million ASI Federal CreditUnion of Harahan, La. immediately assumed OCFCU’s members, depositsand loans.

Court documents revealed that during the course of an NCUA audit, Gail Teague, who worked as an office manager forthe credit union, admitted to stealing $34,000 by creating afraudulent loan.

Ray is Teague’s sister, according to court documents.

On May 17, 2013, more than one month before the NCUA announcedOCFCU’s liquidation, Teague signed a hand-written confessionacknowledging the theft after auditors interviewed her.

In December 2014, Teague was charged with theft of bank funds.She pleaded guilty and agreed to testify against Ray. Teague wassentenced in July 2015 to three years of probation and was orderedto pay $34,000 in restitution.