Local Woman Admits to Stealing Nearly $850K from Credit Union

PAMELA MALLORY, 42, of Enfield, Connecticut, has pleaded guilty to embezzling more than $840,000 from her former employer, 360 Federal Credit Union.

According to court documents and statements made in court, MALLORY was employed as the lending manager of Windsor Locks-based 360 Federal Credit Union. In her position, MALLORY had access to loan files and authorized loans, including home equity lines of credit (HELOCs).

Between 2009 and 2016, MALLORY opened five different HELOCs in the name of a credit union member and increased the credit limit of those HELOCs on at least 15 occasions, all without the knowledge or consent of the credit union member. Initially, MALLORY perpetrated this scheme by opening subsequent HELOCs to pay off earlier, smaller HELOCs. Later in the scheme, rather than opening new HELOCs, she simply increased the credit limits on two of the fraudulent HELOCs to support her spending.

To avoid detection, MALLORY made minimum, interest-only payments on the HELOCs from her own checking account.

When 360 Federal Credit Union discovered the scheme in January 2016, the credit union member’s property, which is worth less than $150,000, supported two HELOCs, each with credit limits of $417,000, that MALLORY had fully drawn down.

MALLORY pleaded guilty to one count of embezzlement by a credit union employee, a charge that carries a maximum term of imprisonment of 30 years. She is scheduled to be sentenced on August 17, 2016, and is released on a $100,000 bond.

The investigation was led by the Federal Bureau of Investigation, with assistance from Assistant U.S. Attorney John T. Pierpont, who will be prosecuting the case. When asked for comment, officials from the credit union declined, citing the ongoing nature of the case.

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