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Justice News

Department of Justice
U.S. Attorney’s Office
Northern District of Texas

Friday, January 29, 2016

Former Credit Union Employee Sentenced to 30 Months in Federal Prison and Ordered to Pay Nearly $800,000 in Restitution for Embezzling Funds from Pantex Federal Credit Union

AMARILLO, Texas — Dorothy Stegall Barnes, a/k/a “Dorothy Stegall Newman,” of Fritch, Texas, was sentenced this morning by U.S. District Judge Mary Lou Robinson to 30 months in federal prison following her guilty plea in September 2015 to one count of embezzlement from a federally insured credit union, announced U.S. Attorney John Parker of the Northern District of Texas.

Judge Robinson also ordered that Barnes, 57, pay $797,336 in restitution.  She must surrender to the Bureau of Prisons by February 15, 2016. 

According to documents filed in the case, Barnes, who worked as the Assistant Vice-President of Teller Operations of the Pantex Federal Credit Union (PFCU) in Borger, Texas, admitted embezzling approximately $826,000 from the credit union. 

In October 2014, Barnes advised the credit union’s President that a teller had suddenly quit.  At the President’s request, she counted the teller’s vault and advised him that the vault was short $380,000.  The vault was recounted, and the shortage was determined not to be a clerical error.  An audit was conducted, and during the auditing process, the auditor identified a transaction traced to Barnes in which she transferred $826,000 to her teller vault.  Barnes admitted taking the $826,000 over a number of years, but denied any involvement in the missing $380,000.  She admitted embezzling money from PFCU in different ways and said she avoided detection by making various transactions to make her teller vault balance.  PFCU officials located copies of the PFCU checks Barnes issued to pay her bills and other expenses between approximately 1996 and November 2010.

The FBI and Borger Police Department investigated.  Assistant U.S. Attorney Joshua Frausto prosecuted.

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Financial Fraud
Updated January 29, 2016