You are here

Justice News

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

FOR IMMEDIATE RELEASE
Friday, February 5, 2016

Former Manager Of York Federal Credit Union Charged With Embezzlement And Tax Evasion

HARRISBURG  - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that the former Chief Executive Officer-Manager of the HD York Federal Credit Union in York, Pennsylvania has been charged with embezzlement from the Credit Union and with evading federal income taxes.

According to U.S. Attorney Peter Smith, Sherry Garner, age 53, of Red Lion, Pennsylvania, is charged in a Criminal Information with bank larceny. The Information alleges that Garner embezzled $252,106 from the 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 that the total tax loss of $62,704 on her unreported income. Garner has agreed to make restitution to both the credit union and the IRS as ordered by the Court.

HD York Federal Credit Union merged with White Rose Credit Union on May 30, 2014.

No date has yet been scheduled for Garner’s arraignment on the charges. The charges in the Information carry an aggregate maximum term of 15 years imprisonment and $350,000 fine.

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

Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.

A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.

The maximum penalty for Health Care Fraud is 10 years of imprisonment, a term of supervised release following imprisonment, and a fine. The maximum term of imprisonment for  False Statements in Health Care Matters is 5 years imprisonment.

Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.

 

# # #

Topic: 
Tax
Updated February 5, 2016