Internal investigation accuses CEO of $1.2 million embezzlement

An internal fraud investigation at the $54 million Greater Eastern Credit Union in Johnson City, Tenn., alleged that its long-time CEO, Sherry Allen, allegedly embezzled $1.2 million over seven years.

The fraud surfaced in November 2017 that credit union funds may have been misappropriated by Allen who was placed on suspension without pay pending a third-party investigation, according to a statement posted on the credit union’s website earlier this month.

“That investigation is now complete and it has been discovered that Ms. Allen, over the course of at least seven years, had used some $1.2 million of credit union funds for unauthorized purposes and for her personal benefit,” according to the statement.

Presumably, Allen was fired following the internal investigation. Although the GECU’s statement does not specifically address that, it refers to Allen in the past tense.


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