After more than three years since a Kansas credit union wasmerged following a suspected embezzlement scheme, federalauthorities announced Wednesday the indictment of a formerpresident/CEO who is allegedly responsible for stealing more than$5 million.

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Nita Rae Nirschl, 64, of Parsons, Kan., was charged with an81-count indictment including 22 counts of embezzlement, 37 countsof money laundering, 18 counts of interstate transportation ofstolen property and four counts of attempting to evade taxes,according to the Kansas U.S. Attorney’s office.

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An audit conducted by state and NCUA regulators in January 2014determined the $13.3 million Parsons Pittsburg Credit Union was insolvent and it was latermerged into the $590 million Golden Plains Credit Union in GardenCity, Kan.

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The audit revealed Nirschl embezzled more than $5 million fromthe credit union over four years. Initially, an FBI investigator’saffidavit reported $10 million in non-member assets were missing.These deposits, which Nirschl had access to, were made by othercredit unions and banks into the Parsons Pittsburg account atKansas Corporate Credit Union, which is now the $650 millionMillennium Corporate Credit Union in Wichita, Kan.

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The indictment alleged she deposited stolen funds into herpersonal accounts. Nirschl also withdrew the funds from ATMs atHarrah’s North Kansas City casino, the Buffalo Run casino in Miami,Okla., the Stables casino in Miami, Okla., the Downstream casino inQuapaw, Okla., Harrah’s News Orleans casino and Harrah’s Lake Tahoecasino.

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The FBI investigation was launched sometime after the NCUA madean unannounced examination of Parsons Pittsburg on Jan. 14, 2014.On that day, Nirschl was questioned by an NCUA examiner about hergambling activities, according to an FBI investigator’saffidavit.

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She told the examiner that during 2012, she and her husband hadwinnings and losses of $16 million. The FBI affidavit shows thatduring the month of September 2013, Nirschl made more than $500,000in ATM transactions, electronic check transactions, ATM point ofsale transactions and cash withdrawals at two casinos.

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What's more, during the NCUA interview, she had a bag that wasfilled with 500 IRS forms that documented her gambling winnings,which totaled $4 million in December and November of 2013. It wasnot explained why Nirschl had the bag with her during theinterview.

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Although Nirschl told the NCUA examiner that she and her husbandusually “break even” when they gambled, they kept $40,000 to$50,000 in cash at their home to draw on to cover their losingstreaks. The source of this cash was from their gambling winningsand her and her husband's salaries.

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Her husband, Jerry, was a retired postmaster of the U.S. PostalService and worked as a handyman at a local school. His annualsalary was not specified in court documents. However, according tothe credit union's IRS 990 forms, Nirschl earned $61,801 in 2013.In 2014, however, she received only $3,846 in compensation,according to Parsons Pittsburg's IRS 990 form.

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“The examiner asked Nirschl if she ever used credit union moneyto gamble with, and she replied ‘no,’” the FBI investigator wrote in the affidavit. “The examiner thenasked if there were any deposits that had been made into the creditunion that were not recorded properly on the credit union books,and Nirschl again replied ‘no.’”

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During the interview, Nirschl told the examiner that she couldproduce copies of her tax returns showing that she and her husbandbroke even from their gambling.

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But the examiner informed Nirschl she was being placed ontemporary paid leave until after the examination was completed.

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Even when the examination was under way and Nirschl's job was onthe line, she continued to gamble. Currency transaction reportsfiled by casinos revealed that Nirschl inserted $192,269 intogaming devices from Jan. 20, 2014 to March 13, 2014. The CTRs alsoshowed that Nirschl received $57,500 in cash payouts.

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If the former credit union executive is convicted, she faces upto 30 years in prison for each embezzlement count, up to 10 yearsfor each money laundering count, up to 10 years for each interstatetransportation of stolen property count and up to five years foreach tax evasion count.

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