Karolyn J. Stattelman, the former manager of the merged $1.5 million Jayhawk Federal Credit Union in Lawrence, Kan., was sentenced Tuesday to three years of supervised release by U.S. District Court Judge Carlos Murguia in Topeka, Kans.

She also was ordered pay restitution of $173,600, according to court documents.

Stattelman, who is from Topeka, pleaded guilty in June to theft of credit union funds, admitted embezzling $93,500 and concealing it by manipulating credit union accounts for money orders, share drafts, ATM and returned checks. She also admitted to allowing a teller to steal $81,000 from the credit union, federal prosecutors said.

The teller, Christi Marie Hout of Lawrence, Kan., also pleaded guilty in June to one count of theft of credit union funds. She is scheduled to be sentenced Jan. 7, according to court records.

Earlier this year, because of Jayhawk FCU's poor financial condition, the NCUA approved the cooperative's consolidation with the $229 million Mid American Credit Union in Wichita, Kan.

In Michigan, Briana Freel, a former branch manager for the $50 million U.P. State Credit Union in Escanaba, Mich., was sentenced last week to one year in jail.

Freel's sentence was held in abeyance, meaning she was not required to serve jail time as long as she did not violate conditions of probation, according to a WLUC TV6 report in Neganne, Mich.

A Michigan State Police investigation earlier this year alleged that Freel stole more than $50,000 from U.P. State CU.

She pleaded guilty in September to embezzlement and false pretenses, James R. Linderman, prosecuting attorney in Emmet County, Mich., said.

Instant Insights /

Credit Union Managers Cop to Embezzlement

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