Former Texas Credit Union Employee Convicted in Insider Fraud Case

Credit EligibleAs a BankInfoSecurity.com annual member, this content can be used toward your membership credits and transcript tracking. Click For More Info

A former credit union employee pled guilty to embezzling more than $30,000 from his employer, First Service Credit Union in Houston, says U.S. Attorney Tim Johnson.

Christopher Allen, 41, of Houston, pled guilty last week in the U.S. Southern District Court, admitting to bank fraud and aggravated identity theft arising from a scheme he devised while working at the credit union as the Senior Vice President of Area Operations.

Allen was responsible for managing and supervising credit union employees and the daily operations of the branches of the credit union. In that position, he transferred money from one customer's account into another without their knowledge, says Johnson.

Allen would then withdraw the funds using ATM cards he also obtained without the customer's consent. From Dec. 1, 2006, through Jan. 31, 2008, Allen made more than 200 ATM illegal account transfers and illegal ATM withdrawals, totaling more than $30,000.

Allen's fraud came to light in 2008, when a first Service Credit Union member reported suspicious activity. Allen may face up to 30 years in prison and fines up to $1 million when sentenced in February 2010.