ALEXANDRIA, Va.–NCUA has issued two prohibition orders that permanently prohibit two individuals from participating in the affairs of any federally insured depository institution.
Issued the prohibition orders were:
Jose Prado-Valero, Former Employee of Financial Center First CU, Indianapolis
Earlier this year, Prado-Valero, 35, of Carmel, Ind., was sentenced to 33 months in federal prison, followed by two years of supervised release, after pleading guilty to financial institution fraud. He must also pay $2,132,517 in restitution.
According to court documents, from 2016 through August of 2019, Jose Prado-Valero served as the Automated Clearing House coordinator at a credit union beginning in 2019. His duties included posting and coordinating transactions into and out of the accounts of credit union members, which gave him access to members’ personally identifiable information, including Social Security numbers, date of birth, home address and telephone numbers. Prado-Valero also had access to members’ account numbers and account balances.
“Sometime prior to February 14, 2019, Prado-Valero was approached by individuals not employed by the credit union who sought his assistance in conducting a scheme to defraud the financial institution and steal money held in member accounts,” the U.S. Attorneys Office said. “The co-conspirators promised to pay Prado-Valero a portion of the fraud proceeds if he stole members’ identity and account information.
34 Fraudulent Transfers
“Prado-Valero agreed to join the scheme and used his position of trust at the credit union to access members’ account information and steal their money. Between February 14, 2019, and August 16, 2019, Prado-Valero and accomplices successfully made 34 fraudulent transfers to themselves out of credit union members’ accounts, in the aggregate amount of $2,078,725. Prado-Valero was paid over $100,000 by his co-conspirators for his role in the scheme.”
Tracy H. Thibodeau, Former Employee of Vermont VA FCU, White River Junction, Vt.
Earlier this year, Thibodeau, 47, of Windsor, Vt. was sentenced yesterday in United States District Court in Burlington to time served following her guilty plea to a charge of credit union fraud.
U.S. District Judge William K. Sessions III ordered that Thibodeau serve three years of supervised release and pay $136,936.57 in restitution. Thibodeau had not served any period of imprisonment prior to the sentence, the U.S. Attorney’s Office said.
On Feb. 22, 2023, a federal grand jury in Rutland returned a one-count indictment charging Thibodeau, who at the time was known as Tracy Hill, with defrauding her former employer, the Vermont VA Federal Credit Union. Thibodeau began working at the credit union in 2015 and was promoted to branch manager some time in 2016, according to prosecutors.
How Scheme Worked
“The credit union offered VVAFCU Visa credit cards to members and employees,” the U.S. Attorney’s Office said. “According to the indictment, in April 2019, Thibodeau misused her authority at the bank to open a personal VVVAFCU credit card account without proper authorization from her superiors. Later in 2019, Thibodeau again misused her access to the credit union’s credit card processing software to grant herself, without authorization, privileges on her card account.
CU Takes Loss
“Those privileges eliminated maximum account limits; excused her from paying late fees and penalties on overdue balances; and eliminated monthly minimum payments. Between April 2019 and February 2021, Thibodeau used her credit card to make purchases in excess of $140,000,” the U.S. Attorney’s Office continued. “During that period, Thibodeau made only small monthly payments toward her large account balance. Thibodeau concealed her procurement and misuse of the credit card by manipulating internal credit card journal reports to hide from her superiors the existence of a large balance on her account. The credit union discovered the fraud in April 2022 and promptly fired Thibodeau. At that time, the outstanding balance on her account was about $137,000. That loss has been absorbed by the credit union and its insurer.
Thibodeau pleaded guilty to the indictment in the Fall of 2023.