Debra Kinney, the former CEO of Border Lodge Credit Union in Derby, Vt., will serve three yearsin federal prison for embezzling more than $630,000 from accountsof 33 members.

Kinney, 59, of Derby, was also ordered by U.S. District CourtJudge William K. Sessions in Burlington on Monday to serve fiveyears of supervised release after completing her prison term and topay restitution in an amount that will be determined within threemonths, according to court documents.

Pleading guilty to fraud charges in December, Kinney admitted toembezzling funds by writing checks against member accounts toherself or family members, prosecutors said. In addition to theguilty plea, she also agreed to pay the U.S. government $250,000 byforfeiting her property.

On Nov. 30, 2012, the FBI, state and federal bank regulatorssearched the credit union and seized documents based on evidence ofwidespread fraud and misappropriation of funds from memberaccounts. On that same day, the Vermont Department of FinancialRegulation closed the $3.1 million Border Lodge CU and appointedthe NCUA as the liquidating agent.

The decision to liquidate the credit union was to conserve the assets andprotect the interests of the 1,097 members, the Vermont DFIsaid.