ROANOKE, Va. – A former employee at Freedom First CU pleaded guilty to embezzling $36,000 by modifying loans held by her family members and taking the excess cash.
Catherine Keith, 35, told authorities she tinkered with existing loans – held by her mother, father-in-law and a friend – to illegally siphon cash, which she reportedly used for vehicles and trips to college and professional football games.
The discrepancies occurred last year and were spotted by another employee, prosecutors said. An audit was conducted and Keith was arrested in April.
Keith, an employee at the credit union for six years, had expanded the borrowing authority of relatives and an acquaintance who had accounts with limited borrowing authority. Monthly payments continued to be made on those accounts and totaled $8,300.
Her mother had an overdraft loan authorized for $100. As of the audit, it was up to $9,000, records show. Keith diverted notifications about the accounts so they went to her instead of the borrowers.
Keith also violated credit union policy when she handled the accounts of relatives.
As part of a court agreement, Keith pleaded guilty to embezzlement and prosecutors agreed to drop two additional charges of grand larceny and obtaining money by false pretenses.
She is scheduled to be sentenced Dec. 13.
