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Wed June 12, 2013
VA Hospital Federal Credit Union's Former President Pleaded Guilty to Embezzlement
The former President of the VA Hospital Federal Credit Union in Little Rock, pleaded guilty yesterday to federal charges of embezzlement.
Prosecutors say Karen York stole over $60,000 during the course of twelve years at the VA through a check kiting scheme and making false deposit entries.
The FBI defines check kiting as, "a scheme which artificially inflates bank account balances, in accounts that are under common control, for purposes of obtaining unauthorized use of bank funds, through the exchanging of checks between accounts.”
York has already paid back part of the stolen funds but still owes over $43,000. Christopher Thyer, the US Attorney for the Eastern District of Arkansas, and Brian Marr, the special agent in charge of the investigation for the Secret Service office in Little Rock, say York faces up to 30 years in prison, one million dollars in fines, and 5 years of supervision after release from prison.