Credit Union employee accused of stealing from members

Cheryl McClendon (Source: Metro Jail)
Cheryl McClendon (Source: Metro Jail)

MADISON COUNTY, AL (WAFF) - A now-former Redstone Federal Credit Union employee has been arrested after allegedly making unauthorized transactions on member accounts.

According to the credit union, the employee made the transactions on 66 member accounts at their Winchester Road branch. The Madison County Sheriff's Department identified the woman as 35-year-old Cheryl McClendon.

She worked at Redstone for 10 years, but this was a recent event that the internal auditors caught.

According to court documents, McClendon stole $31,980 from the members' accounts.

The transactions were detected through the policies and procedures Redstone Federal Credit Union has in place, according to a news release.

"Once we verified that, we immediately terminated the employee," said Joe Newberry, President & CEO of Redstone Federal Credit Union. "In the seven years I've been CEO, this is the first occurrence I've seen of this type of unauthorized, alleged, transactions."

The members whose accounts were affected have been notified and accounts have been fully reimbursed.

Redstone notified the Madison County Sheriff's Department about the activity and an arrest was made on Dec. 5. The credit union said they are fully cooperating with the investigation.

"Redstone Federal Credit Union is committed to security and soundness," a statement read. "We employ stringent policies and the latest technologies to ensure that our members' accounts and information remain safe and secure."

Newberry said they have more than 850 honest employees who conduct more than 4-million teller transactions per year.

Sheriff's Department officials said they will continue to work with Redstone Federal Credit Union on the incident.

McClendon is out of jail on a $5,000 bond.

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