Former credit union VP sentenced for $3 million embezzlement

Prosecutor says Josephine Crowe failed to take responsibility for her theft that wreaked havoc on the financial lives of credit union members.

A Kentucky federal judge sentenced former credit union executive Josephine M. Crowe Monday to 11 years in prison for stealing more than $3 million from the Louisville Metro Police Officer’s Credit Union that led to its liquidation.

U.S. District Court Judge Joseph McKinley also ordered Crowe to pay restitution of $3,049,025. Reportedly, however, the NCUA wrote off 247 member accounts for a total loss of $3.8 million.

The 46-year-old former vice president and loan officer pleaded guilty in July to one felony count of financial institution fraud and one felony count of aggravated identity theft.

Assistant U.S. Attorney Stephanie Zimdahl noted in a sentencing memo to the court that the staggering loss of the credit union failed to capture the full impact of the emotional distress and hardship that Crowe’s crime caused to members and the local community.

 

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