LAUDERDALE COUNTY TEACHERS’ CREDIT UNION DEFRAUDED BY BANK EMPLOYEE AND LOCAL BUSINESSMAN

HUNTSVILLE, AL - TIMOTHY DAVID SHELTON, 53 of Lexington, Alabama and MELISSA KILLEN, 39, of Rogersville, Alabama, have been indicted by a federal grand jury and charged with conspiracy to commit bank fraud, bank fraud and  false statement to a federally insured institution.  In addition KILLEN was charged with 4 counts of false entries in reports/statements of the financial institution. KILLEN was employed by Lauderdale County Teachers’ Credit Union.

“The significant risk that financial institution fraud poses to our nation’s banking system is heightened when that fraud is carried out by bank employees, the very individuals who are supposed to safeguard the institution’s interests,” stated U.S. Attorney Alice H.  Martin. 
                       
According to the indictment filed, SHELTON and KILLEN conspired to obtain money from Lauderdale County Teachers Credit Union to benefit SHELTON’s business, Tennessee Valley Bottling Company.  Through their scheme to defraud the bank, KILLEN and SHELTON misrepresented the purpose of loans.  SHELTON recruited other individuals to apply for loans to avoid the loan limits set by the credit union, then KILLEN approved the loans without ever meeting the loan applicants.  KILLEN knew the purpose of the loans but never reported the business loans to the Board of Directors nor the National Credit Union Administration. SHELTON and KILLEN falsely caused records to reflect that all funds loaned to the members were real estate and personal loans, when in fact, approximately $6,000,000.00 of those funds were used by SHELTON as business loans for his water bottling company.
           
“These indictments represent the tireless efforts of many people.  I want to thank the Lauderdale County Teachers Credit Union, the National Credit Union Administration and the Alabama Credit Union Administration for their patience and assistance in this case. I also want to thank the men and women of the FBI for their work to bring this matter to fruition,” stated Carmen S. Adams, Special Agent in Charge, Federal Bureau of Investigation.

If convicted, the defendants face a term of imprisonment of not more than 30 years, a fine of not more than $1,000,000, and a term of supervised release of not less than 3 years after any prison term is completed.  Assistant United States Attorney Angela Redmond Debro is prosecuting the matter on behalf of the United States.

Members of the public are reminded that an indictment contains only charges. A defendant is presumed innocent of the charges and it will be the government’s burden to prove a defendant’s guilt beyond a reasonable doubt at trial.