CORRY, Penn.–The former CEO of Corry Area Schools FCU here has pleaded guilty to embezzling more than $741,000 from the CU.
Karen Schenck, 50, pleaded guilty in U.S. District Court in Erie to one felony count of embezzlement of credit union funds. The plea was accepted by U.S. District Judge Davis S. Cercone, who has scheduled sentencing for April 24. Schenck faces as much as 30 years in prison and a $1-million fine.
Schenck admitted to embezzling $741,362 by making fictitious loans and deposits and withdrawing funds from member accounts without authorization between January 2008 and August 2015, according to court documents.
In a released statement, the U.S. Attorney’s Office in Erie said Schenck created $268,402.25 in unauthorized or fictitious loans in the names of her family members and $42,118.07 in loans to herself.
In addition, she also made 60 fictitious deposits totaling $317,897 in her family's accounts and her own account, withdrew $51,035.03 and $44,572.47 from two accounts without authorization, and used $17,338 of credit union funds to pay off personal credit card balances, the U.S. attorney's office said in its statement.
The statement said Schenck used the funds "for her personal benefit or to conceal out of balance conditions in various general ledger accounts.”