Bentler used funds from unapproved loans to pay other unapproved loans to ensure that loans issued to her and her family members were not listed as delinquent in reports to the board. She also hid delinquencies from the board by changing the payment due dates and entering false payments before the actual payments were deposited.

Hiding these delinquencies allowed the former CEO to conceal her fraud for two years, according to federal prosecutors.

Though it was unknown how many loans Bentler issued, court documents listed 19 loans ranging from $690 to $30,000.

In court documents, prosecutors stated that Bentler's sister and daughter provided testimony to legitimize the loan activity.

"There is very strong circumstantial evidence that the defendant's sister and daughter were part of the activity and used as a conduit for the proceeds of the loans," prosecutors wrote in court documents. "It appears this could not have been accomplished without their complicity. Neither the sister nor the daughter were even in a position to execute the scheme here."

The sister and daughter have not been charged with any crime.

On April 23, 2014, Bentler was indicted on 13 felony counts of financial institution fraud, 13 felony counts of making false entries in financial institution reports, and one felony count of money laundering.

In exchange for Bentler's guilty plea to one count of bank fraud in November 2015, the 26 felony charges were dismissed by federal prosecutors, according to court records.

In the fall of 2011, M.H.I. was merged into the $572 million Community 1st Credit Union in Ottumwa, Iowa according to court records.

Bentler's lawyer, Diane Helphrey in Davenport, Iowa, argued in court documents that her client's fraud was not a substantial factor that led to the credit union's consolidation.

Helphrey also argued the monetary loss should be reduced by $80,000 because results of an Iowa Division of Credit Unions audit showed there was additional missing money from a Two Rivers Bank and Trust account in the amount of $51,141. In addition, nearly $30,000 was unaccounted for from M.H.I.'s Iowa Corporate Credit Union account, according to court documents.

"There is no indication that the missing funds are the result of Ms. Bentler's conduct," Helphrey wrote in a sentencing memo on behalf of her client.

Helphrey argued for a lighter prison sentence of 18 months because her client's offense was an anomaly to her true character.

"Those close to her describe her current offense as out of character and are surprised by her involvement in the instant case," Helphrey wrote. "She has no prior criminal history nor any history of drug or alcohol abuse. She has expressed a genuine sense of remorse for her offense and tremendous regret for the effect her choices have had on her family."