CU Shuttered and Manager Charged
After detectives and NCUA auditors confronted Debra C. Pyfrom on June 30, the manager of the $6.3 million IBEW Local 816 Federal Credit Union confessed she stole more than $100,000 over two years.
Then on July 10, the NCUA liquidated the Paducah, Ky., cooperative and discontinued its operations after determining it was insolvent and had no prospect for restoring viable operations.
“An exact amount of how much money was taken over the past approximate two-year period by Pyfrom is pending the completion of an audit that is under way,” the McCracken County Sheriff's Department said in a statement. “Detectives believe based on the evidence and admissions made by Pyfrom the amount exceeds $100,000.”
Detectives began investigating theft allegations on June 23 and suspected criminal activity after reviewing documents. The NCUA was contacted to assist in the investigation.
Pyfrom, 60, of Reidland, Ky., was charged with two counts of theft during a preliminary court hearing July 10.
The public release of the theft allegations on July 11 was intentionally delayed at the NCUA's request to enable adequate time for “proper adjustments to be made and to ensure no disruptions to customers of the credit union occurred,” according to the prepared statement.
Detectives said they received full cooperation from other employees and the board of directors, which facilitated the investigation's progress.
Chartered in 1954, IBEW Local 816 served members, employees and their families of the International Brotherhood of Electrical Workers, AFL-CIO, in Paducah. It was the sixth federally insured credit union liquidation in 2014.