UNITED STATES OF AMERICA
NATIONAL CREDIT UNION ADMINISTRATION
NATIONAL CREDIT UNION ADMINISTRATION BOARD
__________________________________
IN THE MATTER OF
ANN SHEPPARD
No. 02-0401IV
An Institution Affiliated Party and
Person Participating in the Affairs
of the Alliance Credit Union
Fenton, Missouri
___________________________________
ORDER OF PROHIBITION
Pursuant
to Section 206(i)(1) of the Federal Credit Union Act, 12 U.S.C. §1786(i)(1),
you are hereby notified that you are prohibited from participating in
any manner in the affairs of any federally insured credit union. This
prohibition results from activities you engaged in during your affiliation
with Alliance Credit Union. This prohibition is effective immediately
upon service. In accordance with Section 206(g)(7)(A) of the Federal
Credit Union Act, 12 U.S.C. §1786(g)(7)(A), this Order shall constitute
a prohibition from further participation in any manner in the affairs
of any federally insured financial institution, or other entity identified
therein, without the written permission of the appropriate federal regulatory
agency. This Order has been issued based upon the following information.
You pleaded
guilty to one count of Title 18, United States Code, Section 657, embezzlement
from a credit union. You were sentenced on March 29, 2002, by the U.S.
District Court for the Eastern District of Missouri, to imprisonment
for sixty months, followed by supervised release for five years, and
ordered to pay restitution in the amount of $762,270. A copy of the
Criminal Docket for Case # 01-CR-364-ALL is attached to this Order as
Attachment 1 and is incorporated by reference herein. Because an appeal
has not been filed within the time specified by the Federal Rules of
Appellate Procedure, your conviction is now final.
The offense
of which you were convicted, embezzlement from a financial institution,
was committed while you were employed as a collections manager and as
the vice-president of lending of the Alliance Credit Union of Fenton,
Missouri. From July 1998 until May 2001, you embezzled approximately
$1.2 million from the Alliance Credit Union. As a collections manager,
you diverted collection proceeds to your own benefit. Subsequently,
as the vice-president of lending, you created fictitious loans and diverted
the proceeds to your benefit. At the time of your criminal actions,
Alliance Credit Union was a federally insured credit union.
The offense to which you pleaded guilty involves personal
dishonesty and breach of trust. Your continued participation in the
affairs of any federally insured credit union may pose a threat to the
interests of credit union members and may threaten to impair public
confidence in the credit union involved.
NOTICE OF HEARING
Pursuant to Section 206(i)(3), of the Federal Credit Union
Act, 12 U.S.C. §1786(i)(3), you may request in writing, within thirty
days of service of this Order, an opportunity for a hearing at which
you may present evidence and argument that your continued participation
in the affairs of any federally insured credit union would not, or would
not be likely to, pose a threat to the interests of that credit union's
members or threaten to impair public confidence in the credit union.
Any such request should be sent to: Secretary of the Board, National
Credit Union Administration, 1775 Duke Street, Alexandria, VA 22314-3428.
This hearing will be held in the Washington, D.C. metropolitan area,
or such other place as designated by the Board, in accordance with Subpart
D of Part 747 of NCUA's Rules and Regulations, 12 C.F.R. §747.301 et.
seq.
PENALTY FOR VIOLATION OF ORDER OF PROHIBITION
Pursuant
to Section 206(k)(2) of the Federal Credit Union Act, 12 U.S.C. §1786(k)(2),
any violation of this Order may subject you to a Civil Money Penalty
of up to $1,000,000.00 a day for each day said violation continues.
In addition, pursuant to Section 206(l) of the Federal Credit Union
Act, 12 U.S.C. §1786(l), any violation of this Order is a felony offense
that is punishable by imprisonment of up to five years and a fine of
up to $1,000,000.00.
Dated this 19th
day of April, 2002
by
National Credit Union Administration
Board
/s/
MELINDA LOVE
Regional Director, Region IV
National Credit Union Administration
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