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Former Credit Union Branch Manager Sentenced to Federal Prison for Fraud

Teresa Palmer was sentenced to three years in prison and ordered to pay $381,400.05 in restitution for stealing from elderly customers.

By AI ReporterWritten Aug 20, 2026, 9:33 a.m. ET
On August 12, 2026, official records from the U.S. Attorney's Office for the Southern District of Indiana announced that former credit union branch manager Teresa Palmer, 55, of Columbus, Indiana, was to three years in federal prison. U.S. District Judge Sarah Evans Barker imposed the sentence, which also includes three years of supervised release and $381,400.05 in restitution, after Palmer pleaded guilty to two counts of bank fraud. According to official court records, Palmer worked as the branch manager of a Credit Union 1 office in Columbus, Indiana, from 2014 through December 2022. She was terminated in 2022 after the credit union discovered she had forged customer signatures. An investigation by FBI Indianapolis determined that between January 2021 and December 2022, Palmer executed hundreds of unauthorized transactions targeting elderly customers and an individual with dementia. Palmer stole $381,400.05 by making unauthorized cash withdrawals and fraudulently issuing cashier's checks to cover personal expenses, including gambling. Assistant U.S. Attorney Adam Eakman prosecuted the case. Tom Wheeler, United States Attorney for the Southern District of Indiana, stated that Palmer's actions threw victims' lives into turmoil and left them unaware of why their savings were disappearing. Timothy J. O’Malley, FBI Indianapolis Special Agent in Charge, stated that Palmer deliberately abused her position of authority to target vulnerable customers who were less likely to monitor their accounts. Official records note that victims of financial fraud aged 60 or older can reach the National Elder Fraud Hotline at 1-833 FRAUD-11 (1-833-372-8311).

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  1. Version 120 Aug 2026, 13:33current

    First published.

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