NEW CASTLE, Ind.– A former CU employee has been charged with stealing nearly $275,000 from the credit union in a case that allegedly involved a 9,000% credit line increase, while in a separate case a former Army recruiter has pleaded guilty in an ID theft case that targeted Navy Federal.
In Pennsylvania, a former credit union employee has been charged with allegedly stealing more than $274,000 through unauthorized increases to her own credit card limits, according to a report by WKBN citing a criminal complaint.
Erin Ross, 51, of New Castle, Penn., has been charged with theft by deception and forgery, both second-degree felonies, and unauthorized access to a device, a third-degree felony.
Court documents did not identify the credit union involved.
9,000% Credit Line Increase
According to the complaint, a consultant working with the credit union reported in February that Ross had originally been approved for a credit card with a $3,000 limit. After reviewing account discrepancies, the consultant allegedly discovered Ross’s credit limit had been increased to $275,000 and that the account carried a balance of more than $277,000.
Investigators alleged Ross had access to a system that allowed her to initiate credit-limit increases, although any increase above $10,000 required approval from the credit union’s board of directors. The complaint states that documentation purportedly authorizing the increases contained signatures that board members later said were fraudulent.
Nearly $600,000 in Purchases
WKBN reported that investigators found purchases totaling nearly $590,000 on Ross’s account, including transactions involving PayPal, BetMGM, DraftKings, Hollywood Casinos and Venmo. After payments totaling approximately $334,300 were credited to the account, the credit union suffered losses of roughly $274,600, according to the complaint.
The consultant told investigators that Ross admitted increasing her credit limits and said she had a gambling problem, according to the complaint. Ross has been terminated from her employment. Court records cited by WKBN show she was scheduled for arraignment Tuesday, with a trial date set for Aug. 3.
Army Recruiter Pleads Guilty
In a separate case, a former Army recruiter has pleaded guilty to federal charges stemming from a scheme that used the identities of prospective military recruits to obtain loans, credit cards and other financial products through Navy Federal Credit Union, according to Stars & Stripes.
Former Sgt. 1st Class Jane Crosby, 35, pleaded guilty in federal court in Newark, N.J., to one count of bank fraud and one count of aggravated identity theft, the publication reported, citing the U.S. Department of Justice.
According to court records, Crosby used personal information from individuals she was recruiting for military service to open Navy Federal “pre-active duty membership” accounts, which are intended to facilitate direct deposit of military pay once recruits enter service.
Prosecutors alleged Crosby used the stolen identities to apply for more than $266,000 in loans and lines of credit and attempted to deposit thousands of dollars in fraudulent checks. While Navy Federal denied or canceled many of the applications, prosecutors said Crosby was able to withdraw thousands of dollars after making some deposits.
Trips to Vegas, New York
According to a criminal complaint cited by Stars & Stripes, Crosby also used an approved credit card with a limit of nearly $15,000 to purchase airline tickets for herself and a relative traveling between Las Vegas and New York.
As part of her plea agreement, Crosby agreed to pay nearly $18,150 in restitution to Navy Federal Credit Union. In exchange, federal prosecutors agreed not to pursue additional bank fraud or identity theft charges.
The bank fraud charge carries a maximum sentence of 30 years in prison, while the aggravated identity theft charge carries a mandatory minimum sentence of two years. Sentencing has not yet been scheduled.
Army Criminal Investigation Division officials praised the investigation. Joel Kirch, special agent in charge of the agency’s Northeast Field Office, said Crosby “callously took advantage” of individuals through programs designed to assist them.
‘Will Never Happen Again’
Crosby’s attorney, Harley D. Breite, told Task & Purpose that his client regretted her actions.
“She led a law-abiding life,” Breite said, according to Stars & Stripes. “She’s sorry for what she has done, and this will never happen again.”
