In their sentencing memo, prosecutors recommended a 21-month sentence.

What made Muzzana’s case unique and in some ways more egregious than other payment card theft, prosecutors argued, was her trusted access to members’ accounts and responsibility for overseeing Altana’s fraud-alert system.

Between January and Dec. 12, 2023, Muzzana created duplicate debit and credit cards, which she took home. She also took undelivered cards that were returned to the credit union by the postal service. She used these cards to make more than $65,000 in purchases online and at retail stores throughout Billings.

“She was literally responsible for reporting fraud perpetrated on Altana’s customers. The irony is, she was the one perpetrating it, which created significant challenges to the investigation,” prosecutors wrote. “It was difficult for bank analysts and investigators to decipher what were ‘other’ thefts from Muzzana’s thefts. This was by design.”

Prosecutors said she concealed her actions by calling victims herself and facilitating reimbursements, helping to avoid law enforcement detection.

Her scheme, however, unraveled after a member reported a fraudulent charge. When a detective contacted Altana, Muzzana downloaded the call recording, learned of the investigation and fled the building. She never returned.

Altana reimbursed all affected members.

In a victim impact statement, Altana FCU President/CEO Jason Hagadone said the institution suffered serious reputational damage.

“As a financial institution, our members entrust us with one of the most important aspects of their life: Their finances. Kelly breached that trust by stealing and using their debit cards,” Hagadone said in a statement released by the U.S. Attorney’s Office.

In a letter to the court, Muzzana expressed remorse and regret for her actions, acknowledged the seriousness of her offenses, and accepted full responsibility and subsequent consequences for them.

“This experience has been profoundly humbling,” she wrote. “I have taken steps to understand the impact of my choices and have begun the work of rebuilding my integrity. I am committed to making amends to the extent possible and to never repeating this kind of behavior in the future.”

Peter Strozniak can be reached at [email protected].