Hilda Simental Mendoza, Bank Fraud, Texas 2016
Former El Paso Federal Credit Union Executives Sentenced to Federal Prison
El Paso, Texas - Two former executives of the El Paso Federal Credit Union (EPFCU) have been sentenced to federal prison for their roles in a scheme to steal millions of dollars from the financial institution, leading to its failure.
Hilda Simental Mendoza, a 53-year-old former EPFCU assistant manager, was sentenced to 121 months in federal prison followed by five years of supervised release. In addition to the prison term, Judge Martinez ordered that Mendoza perform 100 hours of community service.
Maria Guadalupe Hernandez, a 59-year-old former EPFCU manager, was sentenced to 188 months in federal prison followed by five years of supervised release. In addition to the prison term, Judge Martinez ordered Hernandez to pay a $10,000 fine.
At sentencing, Judge Martinez ordered both defendants to pay $18,376,542 in restitution to the National Credit Union Administration (NCUA) representing the loss generated by their scheme.
On May 24, 2016, the defendants pleaded guilty to an eleven-count indictment which included charges of bank fraud, wire fraud and conspiracies to commit both bank and wire fraud.
According to court records, beginning in August 2007, the defendants sold more than 100 EPFCU share certificates to other credit unions. The defendants did not record the sale of these share certificates in the credit union records, but kept a log of them in a secret ledger. Monies generated by the unrecorded sales of EPFCU share certificates were placed into accounts created and controlled by the defendants using relatives' accounts, dormant customer accounts, and even active accounts belonging to deceased individuals.
The defendants used the generated funds from newly sold EPFCU share certificates to pay out dividends to investors and principal payments to prior purchasers of EPFCU share certificates. Hernandez used the monies generated by the EPFCU share certificate sales for personal benefit, including travel, the purchase of real estate, and vacations.
The defendants created fraudulent EPFCU records to conceal their scheme from auditors, but were unsuccessful. In September 2011, an examiner from the NCUA discovered accounting irregularities in the amount of EPFCU's undivided earnings in that month's Call Reports. In June 2012, examiners performed a detailed audit of EPFCU records and discovered additional accounting irregularities. During an audit follow-up, examiners discovered a hidden binder inside the credit union which contained an accounting of all of the unrecorded EPFCU share certificates sold by the defendants.
This investigation was conducted by the FBI with assistance from the NCUA. Assistant United States Attorney Chris Skillern prosecuted this case on behalf of the Government.
Key Facts
- State: Texas
- Category: Fraud & Financial Crimes
- Source: DOJ Press Release â†â€â€
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