NCUA bans former cashier who embezzled $ 222,000 from CU

NCUA Headquarters.

Dianne Richardson, a former cashier who stole $ 222,000 from the $ 214 million Pioneer Appalachia Federal Credit Union in Charleston, Va., Has been banned from participating in the affairs of any federally insured financial institution, announced Thursday the NCUA.

Richardson, 70, began serving a 21-month federal prison sentence in July for embezzling funds from the credit union safe over a five-and-a-half-year period.

She is currently incarcerated at Alderson minimum security prison camp in western Virginia, according to the Federal Bureau of Prisons. Richardson’s release date is set for January 2023.

She is the 25th former credit union employee to be banned by the NCUA in 2021. In 2020, the NCUA banned 36 former credit union employees, according to the federal agency’s administrative orders webpage.

Prosecutors said Richardson was hired by what was then the Pioneer West Virginia FCU as a vault cashier in 2005. Richardson began his embezzlement in September 2013. In court documents, prosecutors said that she had sole access to the safe at the South Charleston branch of the credit union, which allowed her to cover up her crimes until early 2019.

Prosecutors said Richardson made several false entries in the credit union’s books and records to cover up cash shortages at the branch. Specifically, she forged cash and withdrawal receipts, forcibly balanced her cash drawer, falsified cash reconciliation reports, and falsified daily cash drawer and vault cash balancing reports. strong, among others.

On February 26, 2019, unlike previous audits, an internal auditor became concerned about the low cash balance in the safe. Prosecutors noted that Richardson created a fake entry minutes before the auditor’s arrival at the branch, and then reverted that fake entry minutes after the audit ended.

Prosecutors said she spent the credit union funds on personal expenses, to help her granddaughter in school and to donate to her church.

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