NCUA expels three former credit union staffers

The National Credit Union Administration has indefinitely barred two former credit union employees from participating in the affairs of any federally insured institution.

Mark Colley, who was formerly employed at the $32 million-asset First Oklahoma Federal Credit Union in Tulsa, will no longer be allowed to engage in any and all affairs of an insured depository institution, the NCUA said Friday. While employed at First Oklahoma, Colley allegedly altered term limits and payment statuses on member loans, impacting the credit union’s reports on delinquencies, according to NCUA filings.

Barbara Diane Nelson, who was previously an accounting supervisor at the $229 million-asset Gerber Federal Credit Union in Fremont, Michigan, is also suspended from partaking in any operations or business dealings of a federally insured financial institution. NCUA documents state that Nelson, during her employment with GFCU from November 2011 to February 2019, embezzled funds from the credit union and was sentenced on Dec. 20.

Both former employees, in accordance with the NCUA’s orders, agreed and consented to the prohibitions issued to them and confirmed their compliance with all the terms and conditions contained within, according to the agency’s press release.

In addition, the NCUA noted that one former credit union employee was convicted and later sentenced in court.

Indira Mohabir, while employed as a business loan processor at Western Federal Credit Union in Torrance, California, was found guilty and later sentenced on charges of conspiracy to commit financial institution fraud and issue credit union obligations without authority in December 2018 after extending more than $2.7 million in credit to her online boyfriend. The credit union is now known as Unify Financial Credit Union in Allen, Texas, with approximately $4.1 billion of assets.

With this month’s new orders, the NCUA has now issued a total of five prohibitions for 2022.