INDIANPOLIS—A former credit union branch manager has been indicted for allegedly stealing more than $350,000 from member accounts at an Indianapolis branch, The Indiana Lawyer reported.
Teresa Palmer faces four counts of bank fraud, according to an indictment filed in U.S. District Court for the Southern District of Indiana. Palmer pleaded not guilty to the charges and was released without pretrial detention. A jury trial is scheduled to begin on Sept. 22, The Indiana Lawyer said.
The indictment filed in the case identifies Palmer’s former employer only as “Credit Union 1,” a financial institution that has branches throughout Indiana and whose headquarters is within the court’s Southern District of Indiana jurisdiction. The indictment does not name Palmer’s age or her city of residence. An internet search indicates that Palmer worked for Columbus, Indiana-based Centra Credit Union, The Indiana Lawyer said.
In response to an IBJ query, Centra sent a statement that provided some details but did not identify Palmer by name, The Indiana Lawyer reported.
“At Centra, our top priority is our members,” the statement said. “When we uncovered a situation in which a former team member was suspected of taking advantage of the trust some members placed in them, we immediately took steps to address the issue. The team member is no longer with the organization, and we are actively working with the FBI on an ongoing investigation. Our impacted members are aware of the situation and have not incurred any losses. We will continue to practice the strong internal controls that helped us identify this situation.”
According to the indictment, Palmer was the branch manager of the credit union’s Indianapolis location at 4562 N. Shadeland Ave. from 2014 until December 2022.
Between Jan. 7, 2021, and Dec. 9, 2022, she allegedly carried out “hundreds of unapproved transactions,” withdrawing more than $350,000 from selected customer accounts.
“As the branch manager, Palmer knew which Credit Union 1 customers were elderly and unable to regularly monitor their accounts,” the indictment alleges. “Palmer targeted these accounts for her scheme.”
The indictment claims that in some instances, Palmer withdrew cash directly from customer accounts without their knowledge or consent. In other cases, she allegedly generated fake cashier’s checks drawn from customer accounts and made payable to third parties. Palmer then either cashed the checks herself or instructed other employees to do so, falsely stating she was acting on behalf of the customer. Prosecutors allege she used the stolen funds for personal expenses, including gambling, The Indiana Lawyer said, adding that according to federal sentencing guidelines, bank fraud carries a penalty of up to 30 years in prison and/or a fine of up to $1 million.