The National Credit Union Administration – the federal regulatory agency that oversees credit unions – has prohibited Edgar Hugh Kelly from participating in the affairs of any federally insured financial institution.
Last year, Kelly was convicted of theft from KBR Credit Union of Tacoma. He was sentenced to 33 months in prison, three years of supervised release and was ordered to pay $440,000.
Kelly had been employed for nearly 13 years by KBR, a small Tacoma credit union originally incorporated to serve the needs of St. Regis workers, and later those at Simpson.
At sentencing last year, U.S. District Judge Benjamin H. Settle said he was particularly troubled by Kelly’s severe breach of the public’s trust, noting that “if people can’t trust their financial institutions to protect their money, then our society is in a lot of trouble.”
The credit union was compensated by its insurance carrier for the loss.