U.S. Department of Justice

Federal Bureau of Investigation

100 W. Capitol Street
Suite 1553
Jackson, Mississippi 39269

Contact: Deborah Madden
(601) 948-5000

For Immediate Release
June 28, 2006

PRISON TIME AND RESTITUTION ORDERED FOR GAIL JAMES

GAIL E. JAMES, age 46, of Gulfport, Mississippi, appeared for sentencing today before United States Judge Louis Guirola, Jr. She had entered a guilty plea on March 6, 2006 to one count of bank embezzlement, following an investigation conducted by the FBI and security officials within the Keesler Federal Credit Union (KFCU). John G. Raucci, Special Agent in Charge of the FBI in Mississippi, stated that JAMES, an employee of KFCU for approximately two years, had been charged with using her position of trust in a scheme to defraud KFCU by making unauthorized cash withdrawals. At the completion of the investigation, two vehicles purchased by JAMES with funds allegedly embezzled from KFCU, were forfeited, then sold, and the proceeds were returned to KFCU.

JAMES was sentenced to serve 17 months in prison, followed by 5 years of supervised release for embezzling from her former employer. In addition, JAMES has been ordered to pay restitution in the amount of $105,119.88.

JAMES is expected to begin serving her prison time within sixty days.

This case was prosecuted by Assistant United States Attorney Ruth Morgan.