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09/16/2024

Former Valdosta credit union execs sentenced for multi-million dollar fraud scheme

Fox 5 Atlanta

Two former leaders of Southern Pine Credit Union in Valdosta have been sentenced to prison for their involvement in a multi-million dollar fraud scheme that spanned years.

Teresa Paulo, former controller of Southern Pine Credit Union, was sentenced to five years in prison and ordered to pay back more than $1.2 million in restitution. 

Paulo, who pleaded guilty in November 2023, was sentenced on Sept. 12 for aggravated identity theft and bank fraud. Her scheme involved creating fraudulent loans using the identities of credit union members without their knowledge. Over nearly a decade, Paulo transferred loan proceeds into joint accounts for personal spending and concealed her actions by manipulating credit union records.

Leah Lehman, the former president of Southern Pine Credit Union, was sentenced in May to six years in prison and ordered to pay over $4.4 million in restitution. 

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