INDIANAPOLIS — A former branch manager at a credit union in Indianapolis has been indicted on federal bank fraud charges after allegedly withdrawing more than $350,000 from member accounts, targeting elderly members who were unable to regularly monitor their finances.
Teresa Palmer, who managed a Credit Union 1 branch in Indianapolis, was charged with four counts of bank fraud in an indictment filed last month in the U.S. District Court for the Southern District of Indiana. According to the filing, Palmer used her position to authorize unauthorized withdrawals from customer accounts between January 2021 and December 2022.
Fraudulent Checks
Federal prosecutors allege Palmer issued fraudulent cashier’s checks using forged signatures and either cashed them herself or directed others to do so. She then allegedly used the funds for personal expenses, including gambling.
“Palmer created these cashier’s checks and cashed them without the customers’ knowledge, consent or authorization,” the indictment states. “Once the cashier’s check was converted into cash, Palmer kept the cash for her personal use.”
The Alleged Incidents
The four bank fraud charges relate to the following alleged incidents, according to prosecutors:
- On Dec. 29, 2021, Palmer allegedly withdrew $5,000 using a cashier’s check.
- On June 11, 2022, she allegedly withdrew $5,500 in cash from the same account.
- On Nov. 26, 2022, she allegedly withdrew $3,100 using a cashier’s check from a second victim.
- On Dec. 9, 2022, she allegedly withdrew $6,250 from the second victim’s account.
While those counts focus on specific transactions, prosecutors said Palmer conducted hundreds of unauthorized withdrawals during the two-year scheme, totaling more than $350,000.
Palmer was arrested in Columbus, Ind. She is expected to face arraignment in the coming weeks.
