Back in 2007, executives at the $112 million Bear Paw Credit Union in Harve, Mont., began having unusualcash shortages at two ATMs at a local health center and at aconvenient store on a Native American reservation.

At first, executives did not suspect an employee was stealingfrom the ATMs, and thought it might be a mechanical or softwareproblem. So they asked service technicians to inspect the ATMs whofound the machines were working properly and advised executives anemployee may be stealing.

They were right.

Peggy S. Teel, the former head teller, was charged last monthwith embezzling $129,409, and is scheduled to appear in stateDistrict Court to enter a plea on Aug. 15.

Though court documents show the theft began in 2003, it wasn'tuntil Feb. 3, 2016, when Gerry Veis, Bear Paw's executive vicepresident, walked into the Harve Police Department and reportedthat an employee stole nearly $130,000 from the credit union'sATMs, teller cash drawers, a lobby coin vault and the credit unionvault, according to court documents.

Although Veis told police investigators that the ATM theftsurfaced in 2007 and went on to 2015, court documents show cashshortages from teller drawers went back to 2003. Moreover, cashshortages from the credit union's vault were initially detected in2004, according to court documents. These thefts also keptoccurring through 2015.

Veis was unavailable for comment Monday. Bear Paw President/CEO Albert J. Vukasin Jr. did not return aCU Times phone call seeking comments Monday.

New policies and procedures finally thwarted the ATM theft.However, a new policy to address teller cash shortages didn't work,according to court documents.

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Veis told police investigators that when cash is being handled,all tellers and management generally have another employee presentwith them. However, after he reviewed branch operations, Veislearned that Teel opened the credit union every morning and wastypically alone because another employee who was supposed to bethere as well often reported late to work.

Even when this employee arrived to work on time, she would godownstairs to her office leaving Teel alone with full access to theteller cash drawers and vault.

Other tellers told police investigators they noticed their cashdrawers were short in the morning after having balanced them theprior evening. They also reported cash was missing from thevault.

When the tellers began counting the cash in their drawers in themorning, at noon and at the end of the day, Teel took issue with itand told them “they had trust issues,” according to policeinvestigators.

When police confronted Teel about the theft, she initiallydenied it and left the police station, but she later returned andadmitted to the embezzlement.

Teel said she could not remember when she began stealing fromthe credit union or why.

“Teel stated she did not need the money,” police investigatorswrote in court documents. “Teel stated she does not know why shetook it, she just did.”

She told police that she used the money to buy things for herkids and grandkids.

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