Bank Fraud Sentence Handed Down to Former CU CEO
Christine Darley, former president/CEO of the $3 million Panhandle Cooperative Federal Credit Union was sentenced Monday to time served, five years of supervised release, which includes six months of house arrest.
In September 2017, Darley pleaded guilty to bank fraud. In exchange for her guilty plea, prosecutors dropped five bank fraud charges. She admitted to improperly obtaining an $180,000 loan from the $3 million Scottsbluff. Neb.-based credit union.
U.S. District Court Judge John M. Gerrad in Lincoln, Neb., also ordered Darley to pay restitution of $137,378 to CUMIS Insurance Society Inc. and $2,500 to Meridan Trust Federal Credit Union.
When she was indicted in February 2017, federal prosecutors said she allegedly embezzled more than $535,000. However, federal prosecutors acknowledged that the amount of loss and restitution was a contested issue.
From August 2010 to June 2012, Darley withdrew funds and deposited the money into personal accounts she controlled at the credit union or at First State Bank, also based in Scottsbluff.
In addition, she falsified documents to conceal her theft from the board of directors. The former CEO used the funds for her own benefit as well as for her family and friends.
In November 2013, Darley and her husband filed for Chapter 13 bankruptcy in Nebraska’s federal court. They listed $496,496 in secured liabilities, $70,027 in unsecured liabilities and $251,950 in assets, according to court documents.
After determining PCFCU’s poor financial condition, the NCUA approved the credit union’s consolidation in 2016 with the $368 million Meridian Trust Credit Union in Cheyenne, Wyo.