NEWARK, N.J. -- A former City Federal Savings Bank employee pleaded guilty of embezzling about $614,000 from the failed thrift in 1989, the U.S. attorney's office said.
Herb R. Edwards, who managed a branch of City Federal Mortgage Corp., the thrift's affiliate in Orlando, faces a maximum of 10 years in federal prison and fines as much as twice the amount gained in the scheme.
He pleaded guilty to two counts of conspiracy and embezzlement.
With a co-conspirator, Mr. Edwards diverted to a bogus company account about $614,000 of loan disbursements, he told federal Judge Dickinson R. Debevoise.
The defendant admitted splitting the proceeds with Theresa L. Kaskey, who also worked at the mortgage unit.
Ms. Kaskey pleaded guilty to similar charges last May.
City Federal was taken over by the Resolution Trust Corp. in December 1989 after reporting a $1 billion loss for the year.