ALEXANDRIA, Va. (12/3/12)--Joyce Judy, a former credit union president who allegedly invested $500,000 of a member's money in a racetrack that turned out to be an international scam, is one of two individuals now prohibited from participating in the affairs of any federally insured financial institution.
The National Credit Union Administration issued prohibition orders against Judy and Kimberly Unger on Friday.
Judy late last year was sentenced to 26 months in prison for one count of fraud. She has also been sentenced to three years of supervised release and has been ordered to repay $500,000 in restitution.
Judy was president of Little Rock, Ark.-based Arkansas Employees FCU when the investment incident occurred in late 2009. She allegedly persuaded a member to invest in what she thought was a certificate of deposit, said prosecutors. Judy pooled the funds with $500,000 of her own funds. A business partner wired the money overseas without her permission, and the funds disappeared.
Unger consented to her prohibition order to avoid the time, cost and expense of litigation. She is a former employee of Spencerport FCU, Spencerport, N.Y.
Violation of a prohibition order is a felony offense punishable by imprisonment and a fine of up to $1 million. For the full NCUA release, use the resource link.