MOLOKA’I, Hawaii–A former employee of a credit union here has been sentenced to four years and two months in jail for her role in conspiring to embezzle from the First Hawaiian Homes FCU. The embezzlement eventually led to the shuttering of the credit union.
Janell Purdy, 40, has also been ordered to pay $949,736.36 in restitution and serve three years of supervised release as part of the sentence, according to the Justice Dept.
Earlier, Purdy’s co-conspirator, Allennie Naeole, 55, entered a guilty plea to charges of conspiracy and aggravated identity theft, and was sentenced in June to seven years’ imprisonment, three years of supervised release, and payment of $1,055,188 in restitution.
As CUToday.info reported earlier, Purdy and Naeole, who were the only two permanent employees of the credit union, conspired to embezzle more than $1 million from the First Hawaiian Homes FCU. Naeole managed the credit union, while Purdy worked as a member service rep.
According to court documents, Purdy and Naeole overdrafted accounts in violation of policies and issued unauthorized checks from the CU’s accounts. The funds were used to pay for personal expenses, including credit card payments, trips, car payments, mortgage payments, vacation property payments, and various bills.
The embezzlement was concealed through the use of fictitious deposit and loan entries, as well as via a fake email account to communicate with NCUA.
The scheme was uncovered in December 2015
In December 2015, the scheme was uncovered by an NCUA examiner. With losses exceeding $2 million, the credit union was eventually merged out.