Former Arkansas Credit Union President Pleads Guilty to Embezzlement
Karen York, the former president of the $8.9 million VA Hospital Federal Credit Union in Little Rock, Ark., pleaded guilty this week to embezzling more than $62,000 over 12 years.
In U.S. District Court in Little Rock, York admitted Monday that she engaged in a check kiting scheme and made false deposit entries to her account, according to federal prosecutors. She also admitted to falsifying records to hide the fact that funds were missing from the credit union.
York, 45, also said in court that she used VA Hospital FCU funds for an unauthorized pay increase and unreimbursed health insurance.
An audit from December 2000 to June 2012 uncovered a fraud loss of $62,513 because of York’s criminal actions. Federal prosecutors said York repaid a portion of the loss on the day she was suspended from her job. She has agreed to pay $43,940 in restitution.
A sentencing hearing for York has not been scheduled, authorities said.