Debra Kinney, the former CEO of the shuttered Border Lodge Credit Union of Derby Line, Vt., is now scheduledto be sentenced April 14, 2014, in U.S. District Court inBurlington, Vt.
|She pleaded guilty last month to embezzling from memberaccounts. In addition to the guilty plea, Kinney has agreed to paythe U.S. government $250,000 by forfeiting her property.
|An FBI investigation revealed that Kinney stole more than$70,000. Some of the funds, deposited in a savings bank, were usedto pay for personal expenses, according to court documents. What'smore, $207,000 of “suspicious withdrawals” were made from variousmember accounts to another bank account, according the FBI.
|Kinney, 58, who operated the cooperative from her home, wasindicted in June by a federal grand jury. The embezzlement occurredfrom November 2010 to late in 2012.
|On Nov. 30, 2012, the Vermont Department of Financial Regulationclosed the $3.1 million, Border Lodge and appointed the NCUA as the liquidatingagent.
|The decision to liquidate the credit union was to conserve theassets and protect the interests of the 1,097 members, Vermont DFIsaid.
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