ALEXANDRIA, Va.– NCUA has issued a prohibition order against one person, which permanently bans them from ever again participating in the affairs of any federally insured depository institution.
Issued the prohibition order was Luz Araceli Davila-Hernandez, a former employee of Magnifi Financial Credit Union in Melrose, Minn.
“Generally, the NCUA issues administrative orders when it finds that a credit union — or persons affiliated with a credit union — have violated a law, rule, or regulation; breached a fiduciary duty; or engaged in an unsafe or unsound practice,” the agency said.
According to the prohibition order, Davis-Hernandez was a former teller of Magnifi Financial who pleaded guilty to one count of felony theft in March 2023.
In the order, NCUA said Davila-Hernandez used her position as teller to identify accounts vulnerable to theft and, between May 31 and Oct. 16 of 2023– the period of her employment – “made a series of unauthorized cash withdraws” from "vulnerable accounts and deposited them into accounts she controlled...Davila-Hernandez changed the accounts’ contact information to her own so notices of unauthorized withdraws would go to her instead of the account-owning members."
The order states that her actions caused the credit union “significant financial loss” and that she was terminated Oct. 16, 2023.
The Most Common Orders
The three most common orders issued by the NCUA include:
- An Order to Cease and Desist, which requires an institution or individual to take action (or refrain from taking action), including making restitution
- An Order of Prohibition, which prohibits an individual from ever working for a federally insured financial institution
- An Order Assessing Civil Money Penalties, which requires an institution or individual to pay an assessed penalty amount.