ALEXANDRIA, Va.–NCUA has issued a prohibition order against the former CEO of one credit union who stole nearly one-third of the CU’s assets.
Issued the prohibition order, which prohibits an individual from participating in the affairs of any federally insured depository institution, was Judith Shimanek, a former employee of Ark City Teachers Credit Union in Arkansas City, Kan.
According to prosecutors, Shimanek embezzled more than $1 million from the then $2.9-million Ark City Teachers. Shimanek has been sentenced by U.S. Chief District Court Judge Eric F. Melgren to three years in minimum security federal prison in West Virginia followed by three years of supervised release, and further ordered to pay restitution of $1,005,000.
The agency said Shimanek has agreed and consented to the issuance of the prohibition order and agreed to comply with all its terms to settle and resolve the NCUA board’s claim against her.
The agency noted administrative orders are formal enforcement orders issued by the NCUA pursuant to Section 206 of the Federal Credit Union Act. 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.
Agency enforcement orders and notices are searchable by name, institution, city, state, and year at the NCUA’s Administrative Orders webpage. The webpage also provides links to the federal enforcement actions of federal banking agencies against other institutions or their affiliated parties.