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Press Release

Enfield Woman Sentenced to 21 Months in Federal Prison for Embezzling from Credit Union

For Immediate Release
U.S. Attorney's Office, District of Connecticut

Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that PAMELA MALLORY, 43, of Enfield, was sentenced today by U.S. District Judge Robert N. Chatigny in Hartford to 21 months of imprisonment, followed by five years of supervised release, for embezzling more than $840,000 from her employer, 360 Federal Credit Union.

According to court documents and statements made in court, MALLORY was employed as the lending manager of Windsor Locks-based 360 Federal Credit Union.  In her position, MALLORY had access to loan files and authorized loans, including home equity lines of credit (“HELOCs”).  From 2009 through 2016, MALLORY opened five different HELOCs in the name of a credit union member and increased the credit limit of those HELOCs on at least 15 occasions, all without the knowledge or consent of the credit union member.  Initially, MALLORY perpetrated this scheme by opening subsequent HELOCs to pay off earlier, smaller HELOCs.  Later in the scheme, rather than opening new HELOCs, she simply increased the credit limits on two of the fraudulent HELOCs to support her spending.

In order to evade detection, MALLORY made minimum, interest-only payments on the HELOCs from her own checking account.

When 360 Federal Credit Union discovered the scheme in January 2016, the credit union member’s property, which is worth less than $150,000, supported two HELOCs, each with credit limits of $417,000, that MALLORY had fully drawn down.

In total, MALLORY stole approximately $840,378.28 from 360 Federal Credit Union and used the proceeds of the scheme to pay her own creditors.  Judge Chatigny ordered MALLORY to make full restitution.

On May 12, 2016, MALLORY pleaded guilty to one count of embezzlement by a credit union employee.

MALLORY, who is released on bond, was ordered to report to prison on September 28, 2016.

This matter was investigated by Federal Bureau of Investigation and prosecuted by Assistant U.S. Attorney John T. Pierpont, Jr.

Updated August 17, 2016

Financial Fraud