LITTLE ROCK, Ark. The president of Veterans Administration Hospital FCU was convicted yesterday of embezzling $62,500 from the tiny one-branch credit union inside the VA to pay herself an unauthorized raise and for unreimbursed health insurance.
Karen York, 45, has paid back $18,570 of the stolen funds and agreed to pay restitution of the remaining $43,900 to the $9 million credit union and to CUMIS Insurance under a plea deal with prosecutors.
At the change of plea hearing, the credit union manager 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. An audit uncovered the embezzlement, which occurred between December 200 and June 2012.
