ALEXANDRIA, Va. (12/12/07)-- The National Credit Union Administration (NCUA) has issued orders prohibiting six former credit union employees from participating in the affairs of any federally insured financial institution. Five of the individuals received jail terms and four were ordered to pay a total of almost $1.75 million in restitution. According to an agency announcement posted on its Web site Tuesday, Stephen E. Edraney, former manager and consultant at #11713 Bethlehem Municipal Employees FCU, Bethlehem, Pa., agreed to an order of prohibition, without admitting or denying fault, in order to save the time and expense of litigation. The other prohibition directives involved:
* Renee Brizza-Davis, a former teller at Connects FCU, Richmond, Va., who was convicted of embezzlement and sentenced to 10 years in prison. All but eight months of the sentence was suspended, a period which is to be followed by supervised release. Brizza-Davis was ordered to pay $46,400 in restitution. * Stephen W. Deaton, a former employee of River Valley CU, Middletown, Ohio, who pled guilty to theft of credit union funds. He was sentenced by the state of Ohio to 18 months in prison and ordered to pay $128,000 in restitution. * Karl R. Hedke, a former loan officer at Wyandotte FCU, Wyandotte, Mich., who pled guilty to bank fraud and was sentenced to 64 months in prison to be followed by four years of probation. Hedke was ordered to pay $1,494,131.96 in restitution. * Reatha Hall Johnson formerly with North Gulfport Community FCU, Gulfport, Miss., who pled guilty to bank fraud and embezzlement. The former manager was sentenced to 21 months in prison to be followed by five years of supervised probation and was ordered to pay $78,461 in restitution. * Matthew A. Pickup, former treasurer at Hopes Employees FCU, Jamestown, N.Y., who pled guilty to grand larceny and was sentenced to 6 months in prison followed by 5 years of probation.
Violation of an NCUA prohibition order is a felony offense punishable by imprisonment and a fine of up to $1 million. Use the resource link below to read NCUA administrative orders.