ALEXANDRIA, Va. – The former CEO of Arkansas Employees FCU was banned from the credit union industry by NCUA this afternoon for stealing $500,000 from a member which she used for her own investment.
Joyce Judy, 58, had promised the member to put the funds in a safe, high-yielding CD, but instead combined the money with her own $500,000 and eventually lost all $1 million in an international investment scam. She was fired when the fraud was discovered.
Judy pleaded guilty a year ago and was sentenced to 26 months in prison.
In order to make of the $1,000,000 for her own investment opportunity, Judy contacted a member of the credit union and said she could invest $500,000 of his money in high yield CD. He agreed to the CD and Judy provided him with a document purporting to be a CD. That CD was later reviewed by the credit union and was determined to be fraudulent.
On October 29, 2009, Judy authorized a credit union check in the amount of $500,000 be written from the member's account and she endorsed that check. That money, along with $500,000 in legitimate funds, was then deposited into an account at another financial institution that had been set up for the investment. That account was a joint account with another individual purportedly involved in the investment opportunity. Without Judy's permission, those funds were later wired out of the country.
From October 29, 2009 until the time the she was terminated, Judy continued to communicate with the member regarding his "CD". The depositor was led to believe that the CD was issued by a bank, was a tax free CD, and that the CD was callable at any time. In November 2010, Judy sent the member a check for $26,000 in an effort to lull the member regarding the validity of his CD. That $26,000 was from the member’s own funds.
NCUA also banned Kimberly Unger, a former employee of Spencerport (N.Y.) FCU.