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Justice News

Department of Justice
U.S. Attorney’s Office
Southern District of Texas

FOR IMMEDIATE RELEASE
Friday, April 7, 2017

Former Credit Union Employee Indicted

GALVESTON, Texas – Authorities have arrested the former manager of Electrical Workers 527 Federal Credit Union on charges of bank fraud, theft and misapplication, and making false statements in the books and records of a financial institution, announced Acting U.S. Attorney Abe Martinez.

 

A federal grand jury returned a sealed indictment against Susan Margaret Garza, 60, of Galveston, on March 23, 2017, which was unsealed today upon her arrest. She made her initial appearance today before U.S. Magistrate Judge John Froeschner. She is set for an arraignment hearing April 13, 2017.

 

The indictment alleges that from 2008 through May 23, 2013, Garza made unauthorized withdrawals from members’ accounts while employed at the credit union. She also allegedly made false entries in the books and records to conceal her unauthorized withdrawals, fraudulently issued checks on the credit union’s bank account and made unauthorized loans in the names of credit union members all for the use and benefit of the herself and others.

 

Each count of bank fraud, theft and misapplication, and false entry carries a maximum penalty of 30 years imprisonment and a fine up to $1 million.

 

The indictment also contains a notice of criminal forfeiture and seeks forfeiture of $466,675.32.

 

The FBI conducted the investigation. Assistant U.S. Attorney John Braddock is prosecuting the case.

 

An indictment is a formal accusation of criminal conduct, not evidence.

A defendant is presumed innocent unless convicted through due process of law.

Topic(s): 
Financial Fraud
Component(s): 
Updated April 7, 2017