Rachel Jones, president/CEO of the $7.1 million Galveston Government Employees Credit Union, had long anticipated the day a former employee would stand trial for stealing more than $300,000 from member accounts.
But that day never came after Jacqueline Marie Burns, 55, pleaded guilty to theft of property in a Galveston courtroom on Dec. 12.
“We were ready for trial,” Jones said. “It was five years, five months and two days we’ve been waiting for justice.”
Jones was disappointed when she learned from a local media report on Dec. 12 that Burns received a sentence of “deferred adjudication community supervision” for 10 years. Judge Rebecca Millo of the 10th District Court in Galveston also ordered the former credit union staffer to pay $336,250 in restitution, according to court documents.
The deferred adjudication community supervision requires Burns to complete 320 hours of community service and follow multiple supervision conditions, according to the court’s sentencing documents. If she successfully completes the supervision’s terms, a final conviction will not be entered on her record. However, if she violates them, a judge could impose a prison sentence under Texas law.
Burns joined the credit union in 2015 and worked as a transaction member service representative, Jones said.
The theft came to light after a member complained that her account had been closed without her knowledge, Jones said. The member had deposited $10,000 inherited from her father and never touched the balance. The member also reported she was no longer receiving bank statements.
Jones said she saw several cash withdrawals in the member’s account and that Burns signed off on changing the member's contact information and address. About a week later, another member reported missing funds from her account.
An internal investigation and third-party audits revealed Burns stole funds from 26 accounts, most belonging to elderly members, some of whom were deceased, between October 2018 and July 2020.
Burns concealed her theft by discarding cash withdrawal receipts, withholding member statements and targeting dormant accounts.
In October 2022, following a police investigation, Burns was arrested and charged.
Her lawyer did not respond to a CU Times request for comment.
Jones said the credit union has since implemented additional internal controls to prevent similar incidents.
Chartered in 1933, Galveston Government Employees CU serves more than 1,700 members and is well capitalized, reporting a net worth ratio of 10.27% for the third quarter, according to NCUA financial performance reports.
Contact Peter Strozniak at peter.strozniak@arc-network.com.
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