Due to a lack of oversight at a small Illinois credit union, twoemployees were able to embezzle more than $320,000 in separateincidents that spanned many years, according to the U.S. Attorney'sOffice.

Kimberly Kent, 53, a former manager at the $4.2 millionMilledgeville Community Credit Union who also served as an electedofficial for a small Illinois town, was sentenced July 14 to eightmonths in federal prison for embezzling more than $220,000 from thecredit union from 2005 to 2012, the court documents said.

In addition to prison, Kent was also sentenced to two years ofsupervised release and a $5,000 fine.

Kelsey Selman, 37, a former teller at the 850-member institutionin Milledgeville, Ill., who admitted embezzling more than $100,000from 2007 to 2012, was sentenced in May to two days in prison,three years of supervised release and a $4,000 fine, the documentssaid.

Assistant U.S. Attorney Scott R. Paccagnini, who prosecuted bothcases, stated in court that the two women, who were among threeemployees at the credit union, took advantage of the institution'sminimal oversight.

In an interview with CU Times, Paccagnini said one ofthe most unusual aspects of the cases is that both women havealready repaid the credit union for money stolen.

“Both of them paid back the money as they resigned,” hesaid.

In addition to $231,823.15 in restitution Kent already paid tothe credit union, she was ordered to pay $10,176.72 in restitutionto Milledgeville Community Credit Union and $5,278.75 to WysoxTownship to cover investigative costs, Paccagnini said.

The latest two cases follow a string of internal fraudallegations recently uncovered at Illinois credit unions. Otherrecent cases include Paul C. Smith, a former president of Laclede Community CreditUnion and former treasurer of a Illinois Credit Union Leaguechapter, who recently pleaded guilty in U.S. District Court in St.Louis to using the chapter's debit card for almost $60,000 inpersonal expenses over five years. Charles Juska, former president of the $25 million TazewellCounty School Employees Credit Union in Pekin, Ill., recentlypleaded not guilty to misapplying more than $500,000.

In the latest case at Milledgeville Community CU, both formeremployees pleaded guilty earlier this year.

In Selman's plea agreement, the ex-teller confessed to applyingfake credits to her personal account, which caused the creditunion's records to falsely reflect that her cash drawer increasedby an amount to offset the deposit into her account.

In the other case, Kent, who also served as treasurer of WysoxTownship, admitted in a plea agreement that she used fraudulentloans and town funds to conceal her fraud at the credit union.

Prosecutors say the contrast in sentencing is due to the extentof the crimes and the attempts to conceal the fraud.

Read more: How they covered their tracks…

Although Kent and Selman stole the money forpersonal use, Kent went to great lengths to conceal her crime andmay have purposely covered up Selman's fraud, the documentssaid.

To conceal her own fraud, Kent created fictitious loans andcertificates of deposits using names of family members, thedocuments said.

After being elected treasurer of Wycox Township in 2009, Kentbegan using the town's accounts at the credit union to cover herembezzlement, the plea agreement said.

For almost two years, she moved money into and out of WysoxTownship's accounts at the credit union, transferring a total of$175,000 from a township account to cover up her credit unionfraud, the court records said.

After it became clear that the credit union would uncover herillegal activity, Kent resigned and provided information to theauditor.

Both women faced a maximum sentence of 30 years' imprisonment,up to five years of supervised release and up to $1 million each infines.

During the sentencing hearing for Kent, an attorney representingthe former manager requested a lighter sentence due to Kent's “goodcharacter, cooperation, payment of restitution in full prior tocriminal charges being commenced and her psychological diagnosis,”the court documents said.

A doctor who testified at Kent's sentencing said the formermanager embezzled because she believed it was a family need andwant, which stems from her family history, and that she would payback the funds, the court documents said.

However, Kent and her defense team did not explain how someonewith a diminished capacity could go to such great lengths toconceal their crime, the documents said.

In response, prosecutors cautioned the court to not overlook thefact that defendant committed the crimes over the course of manyyears.

Prosecutors said the sentencing needed to reflect theseriousness of the crime, promote

respect for the law, provide just punishment for theoffense and deter criminal conduct by others.

Although defendants may be entitled to lower sentences if theyhave a significantly impaired ability that causes lack of restraintto control wrongful behavior, there must be a link between thedefendant's diminished capacity and the commission of the offenseto warrant a lower sentence, prosecutors said.

“While defendant characterizes herself as law abiding, she failsto account for the more than six years of her life that includedthe day-to-day, week-to-week, and month-to-month taking of moniesfrom the credit union,” prosecutors stated in the court documents.“As a supervisor with no oversight, defendant's actions wentunchecked and the government has little doubt that but for theother employee's embezzlement, defendant's embezzlement would beongoing to this day.”

Unlike Selman, who stole from her teller drawer and did notconceal her illegal activity, Kent created fictitious loans andcertificates of deposit, and used other accounts and her positionas an elected official and credit union manager to move money inorder to hide her illegal activity.

“Such actions do not evidence someone operating with adiminished capacity,” prosecutorsstated.

“The government also notes that it is likely defendant knew ofthe other employee's embezzlement and did nothing to avoid scrutinyon the credit union that would possibly reveal her ownembezzlement,” the documents said. “The credit union's system attimes identified such large amounts of supposed cash on hand in theother employee's teller drawer that defendant would have to havenoticed.”

At one point, Kent electronically lowered Selman's cash draweramount, the documents said.

In addition, Kent wrote the letter of resignation for Selman,which the former teller copied word for word, the documentsstated.

During Kent's sentencing, prosecutors also shot down anotherattempt for sympathy and leniency.

“The government has no doubt that defendant's crime has broughtunwanted community attention to her family and that herimprisonment will have an adverse impact on her family,” the courtdocuments said. “An adverse impact on family is, sadly, a naturalconsequence of an individual's decision to engage in criminalactivity. When an individual is incarcerated, it is expected thathis family life will suffer.”