JOHNSON CITY, Tenn.–A credit union CEO here has been suspended without pay following allegations of using more than $1 million in credit union funds for personal benefit.
The Johnson City Police Department has confirmed that the Federal Bureau of Investigation has taken over the investigation related to the CEO, Sherry Allen, of Greater Eastern Credit Union.
Greater Eastern Credit Union has alerted its members to the investigation in a letter on Feb. 16, according to WJHL.
In its letter, Greater Eastern Credit Union alleges that over the last seven years Allen–who has worked for the credit union for 30 years–has used $1.2 million in credit union funds for unauthorized purposes and personal benefit.
Greater Eastern Credit Union interim CEO Danielle Books told WJHL that the incident is also being investigated by NCUA and the Tennessee Department of Financial Institutions.
The $54.5-million Greater Eastern CU has approximately 4,400 members.