WORCESTER, Mass. – A state appeals court here overturned a fraud conviction for the former office manager of Wyman-Gordon FCU and her husband in the faked $210,000 robbery of the credit union, ruling the lower state court does not have legal jurisdiction over a fraud case in a federal credit union.

Prosecutors may choose to try Susan Carcieri again in a federal court for staging a 2002 robbery when she and her husband, George Labadie, faked a robbery at the credit union and stole the money themselves. Carcieri, who was convicted in November 2010, has been awaiting sentencing based on what the appeals court ruled. Labadie is serving a 10-year term in state prison for counterfeiting and other charges in relation to the phony theft.

Police were called to the credit union on the morning of Aug. 27, 2002, and found Carcieri tied up, the victim of an apparent assailant. But her story eventually fell apart. Several circumstances, including the fact that Carcieri was only loosely bound when officers arrived, made police suspicious of her account. She and her husband were arrested soon after when a neighbor saw them stuffing cash inside the aluminum siding at their home. There police eventually found $24,000 of the cash stolen from the credit union, much of it still in bundles bearing the Federal Reserve marker.

The state appeals court found that the crime of embezzlement from a federal credit union is within the exclusive jurisdiction of the federal courts and outside the jurisdiction of state courts.

But the court ruled that double jeopardy would not prevent a retrial of either suspect, according to the court, which remanded the cases to Worcester Superior Court.

 

Subscribe Now

Authoritative analysis and perspective for every segment of the credit union industry

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.