Debra Kinney, the former CEO of the shuttered Border Lodge Credit Union of Derby Line, Vt., pleaded not guilty to an embezzlement charge last week before a U.S. District Court judge in Burlington, according to court documents.
The amount of money allegedly stolen by Kinney is not yet known. Tristram Coffin, a Vermont U.S. Attorney, said the “amount of the loss is still being compiled, but he believes when completed it will be at least several hundred thousand,” according to a report in the Burlington Free Press.
Kinney was indicted June 6 by a federal grand jury. The embezzlement allegedly occurred from November 2010 to December 2012.
On November 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 was to conserve the assets and protect the interests of the 1,097 members, the Vermont DFI said.