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

VALDOSTA, Ga. - 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. 

Lehman also pleaded guilty to aggravated identity theft and bank fraud. Her scheme, which began in 2003, involved creating and rebooking fraudulent loans, using the proceeds for personal expenses like a boat and gifts for family members. Like Paulo, Lehman manipulated the credit union’s records to avoid detection.

Both cases were overseen by U.S. District Judge W. Louis Sands. U.S. Attorney Peter D. Leary emphasized the serious nature of financial crimes and their impact on communities, while FBI officials praised the diligent investigation that led to the convictions. Neither defendant is eligible for parole.