CORRY, Penn.–The former CEO of the Corry Area School FCU here has been sentenced after pleading guilty to embezzling more than $740,000.
Karen Schenck, 50, was sentenced her to spend two years in a federal prison in West Virginia, must also repay $696,273 in restitution, and spend five years on supervised release.
According to prosecutors, Schenck took the money while managing the credit union from 2008-15, when the embezzlement was discovered. The FBI said Schenck created false loans and deposits, and also withdrew money from member accounts.
Investigators seized several items that Schenck bought with the embezzled money, including two vehicles, a snowmobile, a 5th wheel RV, and a trailer. Those items were sold at auction for than $45,000. That money went to the credit union, and the amount was deducted from the $741,362 Schenck stole, to come up with the restitution amount.
"We were expecting a little bit more time, but we're satisfied with the sentence," said David Armstrong, Board President of the Corry Area Schools Federal Credit Union.
Corry Area School FCU also received $500,0000 from its insurance policy.