Peggy S. Teel, a former head teller for the $112 million Bear Paw Credit Union, pleaded guilty Aug. 18 to embezzling $129,409 from the Harve, Mont.-based credit union over nine years.

A police investigation found Teel had been stealing from Bear Paw's ATMs, teller cash drawers, a lobby coin vault and the credit union vault, according to court documents.

In 2007, executives began having unusual cash shortages at two ATMs at a local health center and a convenience store on a Native American reservation.

At first, executives did not suspect an employee was stealing from the ATMs, and thought it might be a mechanical or software problem. So they asked service technicians to inspect the ATMs, who found the machines were working properly and advised executives an employee may be stealing.

It wasn't until Feb. 3, 2016, however, when Gerry Veis, Bear Paw's EVP, reported the employee theft to the Harve Police Department.

When confronted by police investigators, Teel admitted to the embezzlement but had no explanation as to why she committed the crime. She also said she did not need the money.

She told police that she used the money to buy things for her kids and grandkids.

According to the police investigation, cash shortages from teller drawers and the vault went back to 2003 and 2004, respectively.

But Teel admitted to embezzlement that occurred from Jan. 1, 2007 to Feb. 8, 2016, according to a plea agreement with prosecutors.

The plea agreement requires Teel to pay restitution of $68,279.

She is scheduled to be sentenced on Oct. 17 by Hill County District Court Judge Daniel Boucher.

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Peter Strozniak

Credit Union Times reporter covering credit union operations, fraud, M&As, leagues, business continuity, and breaking news.