Former Vermont Credit Union CEO Faces Arraignment
The former CEO of the shuttered Border Lodge Credit Union of Derby Line, Vt., is scheduled to be arraigned Thursday to face embezzlement charges at U.S. District Court in Burlington, according to court documents.
Debra Kinney was indicted June 6 by a federal grand jury that said she did “willfully embezzle, purloin and misapply moneys and funds” while she worked at the credit union from November 2010 to December 2012. The indictment, however, does not specify the amount of funds that were allegedly stolen.
On Nov. 30, the Vermont Department of Financial Regulation closed the $3.1 million Border Lodge and appointed the NCUA as the liquidating agent. On that same day, federal investigators executed a search warrant and confiscated boxes of documents, including financial records, receipts, bank statements, invoices and other documents.
They also removed two metal filing cabinets, a desktop and laptop computer and a thumb drive, according to court documents.
The decision to liquidate the credit union, Vermont authorities said, was to conserve the assets and protect the interests of the 1,097 members.