Former VA Hospital Federal Credit Union President Pleads Guilty to Embezzlement

by Mark Friedman  on Wednesday, Jun. 12, 2013 9:58 am  

The former president of the VA Hospital Federal Credit Union in Little Rock waived indictment and pleaded guilty Tuesday in U.S. District Court to a federal information charge of credit union embezzlement.

Karen York, 45, took $62,513 between December 2000 and June 2012, according to a news release from the U.S. Attorney's Office in Little Rock.

York "admitted that she engaged in a check kiting scheme and made false deposit entries to her account, and subsequently, falsified records to hide the fact that funds were missing from the VA Hospital Federal Credit Union," the news release said.

She also admitted to using credit union money for an unauthorized pay raise and unreimbursed health insurance.

York repaid some of the money she stole, but she still owes $43,941 in restitution.

She faces up to 30 years in federal prison, a fine of $1 million and five years of probation when she is sentenced at a later date.  

This is the second Arkansas credit union president in recent years to plead guilty to embezzlement. Joyce Judy, the former president of Arkansas Employees Federal Credit Union, pleaded guilty to bank fraud in August 2011. She was sentenced to 26 months in federal prison.



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