JOHNSON CITY, Tenn.–The CEO of a credit union here has signed a plea agreement in which she admits to embezzling more than $1 million, according to federal court records.
The plea agreement shows Sherry Ann Allen has agreed to plead guilty to two charges: theft and attempted tax evasion, while CEO of the $55-million Greater Eastern Credit Union, WJHL reported.
WJHL cited court documents showing Allen has admitted to embezzling nearly $1.2 million over a six-year period and using that money to cover her credit card debt, buy cars, go on cruises and trips, buy a timeshare, camper, clothes and jewelry. The plea agreement also says she donated some of the stolen money to charitable causes and used some of the money to pay for cruises, trips and expensive gifts for co-workers, WJHL reported.
Allen cooperated during the investigation, according to authorities.
The maximum punishment for the theft charge is 30 years in prison and a $1-million fine and five years in prison and a $100,000 fine for the attempted tax evasion charge, according to the plea agreement, WJHL said.
The plea agreement says the restitution amount of $1,195,596 "will be offset by the net proceeds obtained by the victim credit union after the liquidation of all assets seized or turned over by the defendant."
A plea hearing is set for June 20.