Columbus woman sentenced to 3 years in federal prison for bank fraud

COLUMBUS, Ind. - The United States Department of Justice announced Wednesday, August 12, that it had sentenced Teresa Palmer, 55, of Columbus, to three years in federal prison, followed by three years of supervised release after she pleaded guilty to two counts of bank fraud. She was also ordered to pay $381,400 in restitution.

According to court documents, from 2014 through 2022, Palmer worked as the branch manager of a Centra Credit Union office in Columbus. In her role, she had access to customer accounts and was authorized to withdraw funds or issue cashier's checks upon customer approval.   

In 2022, Centra terminated Palmer after discovering she had forged customer signatures on banking documents. Investigators determined that over two years (2021-2022), Palmer had not only forged signatures but also withdrawn funds from four client accounts without permission. 

Palmer targeted accounts belonging to elderly persons, some with dementia. Using her work computer and banking software, she executed unauthorized cash withdrawals and diverted the funds for personal expenses, including gambling. 

In total, Palmer conducted hundreds of unauthorized transactions, stealing $381,400. 

The FBI in Indianapolis investigated the case. U.S. District Court Judge Sarah Evans Barker imposed the sentence.