Former Ochsner Clinic Credit Union Manager Sentenced
U.S. Attorney Kenneth A. Polite announced that JACQUELINE RAY, 60, of Biloxi, Mississippi, was sentenced yesterday after previously pleading guilty to a one-count Bill of Information charging her with stealing over $1 million from Ochsner Clinic Federal Credit Union in connection with bank larceny during her employment.
U.S. District Judge Susie Morgan sentenced RAY to six months incarceration, two and a half years supervised release, with a special condition of six months of home detention with electronic monitoring after her release from prison. RAY was ordered to pay restitution in the amount of $1,000,000 to the CUMIS Insurance Society, the entity which insured Ochsner Clinic Credit Union and $452,752.27 to the National Credit Union Association, the entity which covered the uninsured portion of the funds RAY stole. She was also ordered to pay a $100 special assessment. The Court waived the fine.
According to the documents filed in court, RAY was employed by Ochsner Clinic Federal Credit Union (OCFCU), as the credit union manager and had been employed at OCFCU for nearly thirty years. From 2007 to 2013, RAY stole $1.45 million by creating numerous fictitious loans on the books of OCFCU. RAY created approximately 149 fictitious loans.
No loan documentation existed on any of the fictitious loans. RAY controlled the day to day operation of OCFCU. These fictitious accounts were all coded in the OCFCU data processing system so that no statement of account would be generated, thus hiding RAY’S fraudulent scheme.
The proceeds from the fictitious loan would be stolen from the OCFCU in the form of a check drawn on the OCFCU and deposited in accounts controlled by RAY, or converted to cash. RAY also made false deposits into a local bank to make it appear that she had money in accounts she controlled, when she really did not. RAY would steal cash from these falsely inflated accounts.
U.S. Attorney Polite praised the work of the Federal Bureau of Investigation and the National Credit Union Administration in investigating this matter. Assistant United States Attorney Carter K. D. Guice, Jr. of the Fraud Unit was in charge of the prosecution.