Former CEO pleads guilty to $740,000 embezzlement

A former president/CEO will be sentenced in April for embezzling $741,362 from the $4.6 million Corry Area Schools Federal Credit Union in Corry, Pa.

Karen Schenck, 50, of Bear Lake, Pa., pleaded guilty to one count of embezzlement in U.S. District Court in Erie on Dec. 21.

According to federal prosecutors, Schenck stole the funds in a variety of ways from January 2008 to August 2015.

She made $268,402 in unauthorized or fictitious loans in the names of her family members. She used those funds for her own benefit or to conceal out of balance conditions in various general ledger accounts.

 

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