The FBI is investigating whether the former manager of theformer Parsons-Pittsburg Credit Union embezzled $10 million andgambled it away at casinos in Oklahoma and Missouri, according todocuments filed in U.S. District Court in Wichita, Kan.

|

The NCUA took over the $13.5 million, 1,470-member cooperativein Parsons, Kan., in January blaming unsafe and unsound practices.The federal regulator said the violations were uncovered by theKansas Department of Credit Unions, which seized the credit unionand handed it over to NCUA auditors.

|

In March, the $444 million Golden Plains Credit Union assumedthe assets and operations of Parsons-Pittsburg CU, continuing tooperate its two branches in southeastern Kansas. Golden Plains CUalso retained five employees of PPCU.

|

The documents name Nita Rae Nirschl, and said she was removed asmanager in January. No charges have been filed and the FBI said itwould not comment on ongoing investigations.

|

When questioned by an NCUA examiner, Nirschl admitted togambling and reported gambling activities totaling $16 million in2012, according to the court documents.

|

The documents did not say whether there was a net loss or gainin that gambling.

|

Nirschl denied using credit union funds to gamble, the documentssaid. She also told an examiner all deposits were properly recordedon the credit union's books.

|

However, state and federal examiners found that approximately$10 million in non-member deposits made into the credit union weremissing, court documents show. These deposits were made by otherfinancial institutions into the PPCU account at the KansasCorporate Credit Union.

|

Court documents also show the PPCU employee transferred morethan $730,000 of credit union funds in September 2013. In the samemonth, the documents said, Nirschl spent more than $500,000 at theDownstream Casino resort in Quapaw, Okla., and Harrah's Casino inNorth Kansas City, Mo.

|

What's more, from January 2014 to March 2014, the employee spentmore than $192,000 at gaming devices at the same casinos andreceived $57,000 in cash payouts during the same time, according tocourt documents.

|

In April, FBI agents searched Nirschl's home and confiscated twocashier's checks, one in the amount of $110,000, and the other inthe amount of $20,000. Also seized were eight gold coins, 140one-ounce silver coins, a 2013 Acura MDX worth approximately$43,000, and a Prada handbag.

|

Additionally, federal agents seized one bag of documents showingpurchases of U.S. Savings Bonds, two boxes of tax records andfinancial statements, and two bags of IRS W-2G forms for gamblingearnings.

|

PPCU was established in 1951 and served members in Allen,Anderson, Bourbon, Cherokee, Crawford, Labette, Linn, Montgomery,Neosho and Wilson counties.

Complete your profile to continue reading and get FREE access to CUTimes.com, part of your ALM digital membership.

  • Critical CUTimes.com information including comprehensive product and service provider listings via the Marketplace Directory, CU Careers, resources from industry leaders, webcasts, and breaking news, analysis and more with our informative Newsletters.
  • Exclusive discounts on ALM and CU Times events.
  • Access to other award-winning ALM websites including Law.com and GlobeSt.com.
NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.