HARVEY, Ill. – The manager of now-defunct Allied Tube Steel FCU was barred by NCUA this morning for an embezzlement scheme that drained almost half the assets of the $1.7 million credit union and drove it into failure.
Cynthia Harvey was the tiny credit union’s only employee when she created fictitious deposits in her own name and issued checks without debiting her account, stealing an estimated $800,000 from credit union. When NCUA examiners came calling Harvey created phony audit papers in an unsuccessful effort to hide her theft, according to court records. As a result of the loss, the credit union, which had just 700 members, was liquidated two years ago.
Harvey is scheduled to report May 24 to federal prison where she is scheduled to serve 41 months. She has also been ordered to pay $802,000 restitution.
