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June 11, 2013

Little Rock - Christopher R. Thyer, United States Attorney for the Eastern District of Arkansas, and Brian T. Marr, Special Agent in Charge of the United States Secret Service Little Rock Field Office, announced the waiver of Indictment and a plea of guilty by Former VA Hospital Federal Credit Union President Karen York, age 45, to a federal Information charging credit union embezzlement.

At the change of plea hearing, the defendant 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 defendant also admitted to using VA Hospital Federal Credit Union funds for an unauthorized pay increase and unreimbursed health insurance. An audit from December 2000 through June 2012 determined a fraud loss of $62,513.09 attributed to the defendant, but the defendant repaid a portion of that loss on the day she was suspended. The parties agreed that the defendant owes restitution in the amount of $43,940.59.

The statutory penalty for credit union embezzlement, in violation of 18 U.S.C. ยง 657, is not more than 30 years incarceration in the Bureau of Prisons with a possible fine of up to $1,000,000, and not more than 5 years supervised release.

The investigation was conducted by the United States Secret Service.

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Christopher R. Thyer

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