PEORIA, Ill. – The future of Peoria Highway CU is "tenuous" because the assistant manager embezzled more than $525,000, the chairman of the board told a federal judge this week.
The long-time scheme by Adelle Herron "eradicated the bonds of trust that existed between our employees and our members," wrote Gregory Svovoda, chairman of the credit union board in a letter on the sentencing of Herron.
Herron pleaded guilty to a single count of bank fraud for a scheme that diverted funds from member accounts to her own. She also created phony accounts that she granted loans, check disbursements and transfer to.
The scheme has depleted the $3.4 million credit union’s capital to just over 7% at mid-year and pushed it into the red to the tune of $140,000 in 2007 and $17,200 at mid-year.
"Ms. Herron’s duplicity," wrote Svoboda, "has caused emotional distress to our members and the board of directors. Our membership has declined and our financial future remains tenuous."
