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Justice News

Department of Justice
U.S. Attorney’s Office
Middle District of Pennsylvania

FOR IMMEDIATE RELEASE
Wednesday, July 20, 2016

Former Manager Of HD York Federal Credit Union Sentenced For Evading Federal Income Taxes On Embezzled Funds

HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Sherry Garner, age 54, Red Lion, PA, the former CEO-Manager of the HD York Federal Credit Union in York, Pennsylvania was sentenced by United States District Court Judge John E. Jones, III in Harrisburg to 24 months in federal  prison for evading federal income taxes on money she embezzled from the Credit Union.

According to United States Attorney Peter Smith, Garner previously pled guilty on February 19, 2016, to a Criminal Information charging her with bank larceny and tax evasion. Garner embezzled $252,106 from the HD York Credit Union between 2010 and 2013 and failed to report $70,983 in stolen income on her federal income tax return for 2011, thereby evading $19,069 in federal income taxes.

In a plea agreement filed with the Information, Garner also admitted the total tax loss to the IRS on her unreported $252,106 income ($58,034 in 2010, $70,983 in 2011, $64,308 in 2012, and $58,780 in 2013) was $62,704.  Garner agreed to make restitution to both the York Federal Credit Union and the IRS as ordered by the Court.

Judge Jones ordered Garner to pay $252,106 in restitution to CUMIS Insurance Society, Inc. and $62,704 to the IRS.  Garner is to surrender to the Bureau of Prisons on September 19, 2016.

The case was investigated by the Harrisburg Offices of the Internal Revenue Service and the Federal Bureau of Investigation and was prosecuted by Assistant U.S. Attorney Kim Douglas Daniel.                

           

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Topic(s): 
Financial Fraud
Updated July 20, 2016