Former Credit Union Branch Manager Sentenced to Federal Prison for Ripping Off Elderly and Incapacitated Customers

INDIANAPOLIS- Teresa Palmer, 55, of Columbus, Indiana has been sentenced to three years in federal prison, followed by three years of supervised release after pleading guilty to two counts of bank fraud. Palmer was also ordered to pay $381,400.05 in restitution. According to court documents, from 2014 through December 2022, Teresa Palmer worked as the branch manager of a Credit Union 1 office in Columbus, Indiana. In her role, Palmer had access to customer accounts and was authorized to withdraw funds or issue cashier’s checks when a customer approved a transaction. In 2022, Credit Union 1 terminated Palmer after discovering she had forged customer signatures on banking documents. Shortly after her termination, a client notified the credit union of unauthorized transactions in her father’s account. An internal investigation confirmed that Palmer had not only forged signatures but also withdrawn funds from the client’s account without permission. Further review revealed additional victims: Palmer had stolen from four customer accounts over a two‑year period. Investigators determined that between January 2021 and December 2022, Palmer targeted accounts belonging to elderly customers or individuals unable to regularly monitor their finances. Using her work computer and banking software, Palmer executed unauthorized cash withdrawals and diverted the funds for personal expenses, including gambling. Palmer also fraudulently issued cashier’s checks from customer accounts, making them payable to third parties. She forged the payee’s endorsement, printed the checks, and stamped “for deposit only” or forged a customer’s signature before presenting the checks to a teller, falsely claiming customer approval. Once the checks were converted into cash, Palmer kept the money for herself. In total, Palmer conducted hundreds of unauthorized transactions, stealing $381,400.05 from several elderly victims, including one individual with dementia. The FBI Indianapolis investigated this case. The sentence was imposed by U.S. District Judge Sarah Evans Barker. “Palmer’s crimes threw these victims’ lives into turmoil, leaving them confused and unaware of why their hard‑earned savings were disappearing,” said Tom Wheeler, United States Attorney for the Southern District of Indiana. “Elder fraud is a profoundly evil and calculated crime, driven by greed at the expense of those least able to defend themselves. This office will continue to pursue justice for victims who are targeted because of their age, incapacity, or dependence on others.” “Financial institutions and their customers place tremendous trust in employees who have access to their hard-earned savings, and exploiting that trust for personal gain is unacceptable,” said FBI Indianapolis Special Agent in Charge Timothy J. O’Malley. “This defendant deliberately abused her position of authority to target elderly and vulnerable customers - individuals she believed were less likely to regularly monitor their accounts or discover the theft. She forged signatures, manipulated banking records, and stole money entrusted to her care for her own benefit. The FBI will continue to work with our law enforcement partners to identify those who prey upon vulnerable members of our communities and hold them accountable. This sentence should serve as a reminder that positions of trust are not shields from accountability.” U.S. Attorney Wheeler thanked Assistant U.S. Attorney Adam Eakman, who prosecuted this case. Reporting from consumers about fraud and fraud attempts is critical to law enforcements’ efforts to investigate and prosecute schemes targeting older adults. If you or someone you know is aged 60 or older and has been a victim of financial fraud, help is available from the National Elder Fraud Hotline: 1-833 FRAUD-11 (1-833-372-8311). The hotline is staffed seven days a week from 6:00 a.m. to 11:00 p.m. [ET]. English, Spanish, and other languages are available. More information about the Department’s elder justice efforts can be found on the Department’s Elder Justice website. ###