Cynthia J. Feazell, Loan Fraud, Louisiana 2019
A former credit union loan officer in Louisiana has admitted to her role in a fraudulent loan scheme that caused nearly a quarter of a million dollars in losses to her credit union employer.
Cynthia J. Feazell, 48, of Montgomery, Louisiana, pleaded guilty before U.S. District Judge Dee D. Drell to authorizing fraudulent loans.
According to the guilty plea, Feazell worked as a loan officer and assistant manager at Valex Federal Credit Union in Rapides Parish from 1997 to 2016. The defendant decided to purchase a mobile home in 2015 and obtained loan funds from Valex. She did not qualify for the loan, so she transferred three vehicle loans taken out in her name to her mother's name in order for her to qualify for the loan.
Additionally, Feazell authorized loans for her ex-husband, even though she knew he did not meet the Valex credit requirements. Feazell falsified documents to accomplish the scheme and was aware her actions were fraudulent. The defendant's fraudulent acts caused Valex a loss of $243,167.95.
Feazell faces 30 years in prison, five years of supervised release, restitution and a $1 million fine. The court set the sentencing date for December 17, 2019.
The FBI conducted the investigation. Assistant U.S. Attorney Kelly P. Uebinger is prosecuting the case.
The case highlights the importance of ensuring that credit unions and other financial institutions have robust systems in place to prevent and detect fraudulent activity. It also underscores the consequences of individuals who abuse their positions of trust to engage in such activity.
Key Facts
- State: Louisiana
- Category: Financial Crimes
- Source: DOJ Press Release â†â€â€
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