Date: 07-19-2018

Case Style:

Case Number: 1:17-cr-00621-DKW

Judge: Derrick K. Watson

Court: United States District Court for the District of Hawaii (Honolulu County)

Plaintiff's Attorney: Rebecca A. Perlmutter

Defendant's Attorney: Mike Green

Description: Honolulu, HI - Hawaii Woman Sentenced To Prison For Stealing Over $1 Million From A Molokai Credit Union

Janell Purdy, 40, a resident of Wailuku, Hawaii, was sentenced today to 50 months’ imprisonment for her role in conspiring to embezzle from the First Hawaiian Homes Federal Credit Union on Molokai. As part of her sentence, Purdy must also pay $949,736.36 in restitution and serve 3 years of supervised release. Purdy’s co-conspirator, Allennie Naeole, 55, of Kaunakakai, Hawaii, previously pled guilty to conspiracy and aggravated identity theft, and was sentenced on June 13, 2018 to 7 years’ imprisonment, 3 years of supervised release, and payment of $1,055,188.12 in restitution.

According to court documents and information presented in court, from June 2008 through December 2015, Naeole and Purdy agreed to embezzle more than $1 million from the First Hawaiian Homes Federal Credit Union (the “Credit Union”). Throughout the conspiracy, Purdy and Naeole were the only two permanent employees of the Credit Union and were responsible for all the daily banking activities, including maintaining the Credit Union’s books and records. Naeole ran the Credit Union while Purdy was the teller and customer service representative. Purdy and Naeole overdrafted accounts in violation of bank policies and issued unauthorized checks from the Credit Union’s financial accounts. They spent the money on personal expenses, including credit card payments, trips, car payments, mortgage payments, vacation property payments, and various bills. They concealed the embezzlement by creating fictitious deposit and loan entries in the Credit Union’s books and records.

To further conceal their conduct, Naeole created a fake email account to communicate with the National Credit Union Administration (NCUA). She also submitted a fictitious letter to an NCUA regulator forging a Bank of Hawaii branch manager’s signature and listing Credit Union investment assets at the Molokai branch of the Bank of Hawaii, even though she knew those assets did not exist. In December 2015, the scheme was uncovered by a regulator from the NCUA. As a result of the embezzlement, the Credit Union had become insolvent and was shut down. At the time of its dissolution, it had served the local community for over 75 years and had approximately 1,400 members. The loss and liquidation expenses related to Naeole and Purdy’s conduct exceeded $2 million.

At Purdy’s sentencing, U.S. District Court Judge Derrick K. Watson stated that the results of the conspiracy were “catastrophic.” He stated that Purdy did not seem to understand the root cause of her conduct in continuing “to march along in her spendthrift ways,” even after she knew she was under investigation and would be responsible for hundreds of thousands of dollars in losses. He also agreed with the government that Purdy’s motivation to steal appeared to be “greed.”

The case was investigated by the Federal Bureau of Investigation and the Treasury Department – Office of Investigations.

Count:

18:371.F CONSPIRACY TO DEFRAUD THE UNITED STATES, Conspiracy to embezzle, abstract, purloin, and misapply monies, funds insured by the National Credit Union Administration
(1) SENTENCE: Imprisonment: 50 Months. Supervised Release: 3 Years. Fine: None. Restitution: $949,736.36. Special Assessment: $100.00.

Outcome: 07/18/2018 59 EP : Sentencing to Count 1 of the Indictment held on 7/18/2018 for Janell Purdy (2).
Defendant (2) Janell Purdy present, not in custody.
FBI agent Gregory Turner present.

Defendant (2) Janell Purdy plead guilty to Count 1 of the Indictment on 4/4/2018 with a Plea Agreement.
Court accepts plea agreement.

The Court sustains the Govt.'s Objection for the reasons stated on the record. Parties have reviewed the revised Presentence Report and it is placed in the record.
Court adopts the factual findings of the revised Presentence Report.

The Court agrees and finds that Defendant (2) Janell Purdy is entitled to one-level "timely plea" adjustment under USSG 3E1.1(b).

There are no remaining objections to the sentencing guidelines. Court findings made as to the applicable sentencing guidelines. Court notes the aggravating and mitigating factors related to Defendant (2) Janell Purdy's Sentencing.

Allocution by Defendant (2) Janell Purdy.

Recommendations by Counsel as to proposed sentence heard.

Court's proposed sentence stated. No legal objections to the proposed sentence.
Court imposes sentence.

Count(s) 1, SENTENCE:
Imprisonment: 50 Months.
Supervised Release: 3 Years.
Fine: None.
Restitution: $949,736.36.
Special Assessment: $100.00.

Defendant (2) Janell Purdy advised of her right to appeal within 14 days of entry of judgment.

Judicial Recommendations:
1. Defendant to be placed on the West Coast; and
2. Defendant to receive Vocational and Educational Training.

Count(s) 8-13, Government's oral motion to dismiss Counts 8 through 13 of the Indictment as to is GRANTED.

Without objections by the Govt., Court finds that there are exceptional reasons to justify the Defendant (2) Janell Purdy to remain out on bail with the same conditions to apply until her self surrender.
Mittimus stayed until 8/29/2018.
Defendant (2) Janell Purdy to Self Surrender at the facility designated by BOP on 8/29/2018 by 2:00 p.m.

(Court Reporter Gloria Bediamol.)
(JUDGE DERRICK K. WATSON)
(emt, ) (Entered: 07/18/2018)

Plaintiff's Experts:

Defendant's Experts:

Comments: