The former president of the VA Hospital Federal Credit Union in Little Rock waived indictment and pleaded guilty Tuesday in U.S. District Court to a federal information charge of credit union embezzlement, according to a news release from the U.S. Attorney’s Office in Little Rock.
Karen York, age 45, admitted that she engaged in a check kiting scheme and made false deposit entries to her account, and subsequently, falsified records to hide the fact that funds were missing from the VA Hospital Federal Credit Union, according to the news release.
She also admitted to using VA Hospital Federal Credit Union funds for an unauthorized pay increase and unreimbursed health insurance.
An audit from December 2000 through June 2012 determined a fraud loss of $62,513.09 attributed to York, but she repaid a portion of that loss on the day she was suspended. She still owes $43,940.59.
She faces up to 30 years in federal prison, a fine of $1 million and five years of probation. She will be sentenced at a later date.
The investigation was conducted by the United States Secret Service.