A former credit union branch manager in Columbus, Indiana, has been sentenced to three years in federal prison after admitting to stealing more than $381,000 from customer accounts, including accounts belonging to elderly and vulnerable customers.
Teresa Palmer, 55, of Columbus, was also sentenced to three years of supervised release and ordered to pay $381,400.05 in restitution. U.S. District Judge Sarah Evans Barker imposed the sentence after Palmer pleaded guilty to two counts of bank fraud.
Former Branch Manager Exploited Access to Customer Accounts
According to court documents, Palmer worked as the branch manager of a Credit Union 1 office in Columbus from 2014 through December 2022. Her position gave her access to customer accounts and authorized her to withdraw funds or issue cashier’s checks when transactions had been approved by customers.
Credit Union 1 terminated Palmer in 2022 after discovering that she had forged customer signatures on banking documents.
Shortly after her termination, a customer reported unauthorized transactions involving her father’s account. An internal investigation determined that Palmer had forged signatures and withdrawn money from the account without authorization.
Further investigation uncovered additional victims. Authorities determined that Palmer had stolen from four customer accounts over approximately two years.
Hundreds of Unauthorized Transactions
Investigators found that between January 2021 and December 2022, Palmer targeted accounts belonging to elderly customers and people who were unable to regularly monitor their finances.
Using her work computer and the credit union’s banking software, Palmer allegedly carried out hundreds of unauthorized transactions and diverted the money to personal expenses, including gambling.
Palmer also fraudulently issued cashier’s checks from customer accounts. According to court documents, she made the checks payable to third parties, forged endorsements, and printed the checks before presenting them to tellers.
In some instances, Palmer forged a customer’s signature or stamped the checks “for deposit only” and falsely represented that the transactions had been authorized.
Once the checks were converted into cash, Palmer kept the money for herself.
In total, investigators determined that Palmer stole $381,400.05 from several elderly victims, including one person who had dementia.
Officials Condemn Abuse of Trust
U.S. Attorney Tom Wheeler for the Southern District of Indiana said Palmer’s actions caused significant disruption for victims who were unaware their savings were disappearing.
“Palmer’s crimes threw these victims’ lives into turmoil, leaving them confused and unaware of why their hard-earned savings were disappearing,” Wheeler said.
He described elder fraud as a calculated crime that takes advantage of people who may be less able to protect themselves.
“This office will continue to pursue justice for victims who are targeted because of their age, incapacity, or dependence on others,” Wheeler said.
FBI Indianapolis Special Agent in Charge Timothy J. O’Malley said Palmer abused the trust placed in financial institution employees.
The investigation found that Palmer deliberately targeted customers she believed were less likely to regularly monitor their accounts or discover unauthorized transactions, O’Malley said.
“She forged signatures, manipulated banking records, and stole money entrusted to her care for her own benefit,” he said.
O’Malley added that the FBI will continue working with law enforcement partners to investigate financial crimes involving elderly and vulnerable victims.
FBI Investigated the Case
The FBI Indianapolis investigated the case. Assistant U.S. Attorney Adam Eakman prosecuted Palmer.
Authorities emphasized that reports from consumers are important to investigations involving financial fraud against older adults.
People age 60 and older who have experienced financial fraud can contact the National Elder Fraud Hotline at 1-833-FRAUD-11 (1-833-372-8311). The hotline is available seven days a week from 6 a.m. to 11 p.m. Eastern Time, with assistance available in English, Spanish, and other languages.
