Greenville, TN – 20 June 2018 – Former CEO of Greater Eastern Credit Union of, Johnson City, who plead guilty and admitted to skimming more than $1 million from Greater Eastern Credit Union where she worked, pleaded guilty in U.S. District Court in Greeneville Wednesday to embezzlement and tax evasion.
Sherry Ann Allen, 49, entered the plea without an indictment. She faces up to 30 years in prison and will have to pay restitution to the credit union and the Internal Revenue Service.
Allen was the CEO of Greater Eastern Credit Union on West Mountcastle Drive, Johnson City, during the time she admittedly stole money from the financial institution. She signed a plea agreement last week in which she admitted that she “knowingly and willfully embezzled, abstracted, purloined or willfully misapplied money, funds or credits of such credit unions,” in violation of federal law.
Allen will also be forced to repay the money, and has already relinquished some items bought with the funds.
Allen apparently developed a scheme in 2011 to skim money from the credit union and pay her credit card debt. According to the plea agreement statement of facts, Allen altered the amount due on invoices from vendors to reflect a higher amount. When GECU cut the check to pay the vendor, Allen processed the check and paid the vendor the original amount while pocketing the overage.
As part of the scheme, Allen opened six accounts she labeled as credit union member family accounts. At the time the investigation began, those accounts had a total of approximately $98,000 and were frozen. Credit union employee accounts were apparently protected from viewing by other credit union employees, therefore, no one at the institution could look at Allen’s various accounts. The court document indicated Allen was able to move money into the different accounts without detection.
During the first year of Allen’s scheme, she took approximately $10,000 from the credit union. From that point, the amounts increased each year. Those amounts stolen in those subsequent years were:
• $24,000 in 2012.
• $57,393 in 2013.
• $43,615 in 2014.
• $422,637 in 2015.
• $378,409 in 2016.
In addition to the physical cash Allen kept for herself and her family, court records showed she spent money. Some of the spending included personal credit cards, vehicles, international trips, a timeshare in Orlando, Florida, a camper, clothes and jewelry. Allen was generous with others as well.
The plea agreement stated Allen donated money to charity, paid for her church youth group trips to Ireland, Nicaragua and Florida, paid for Vacation Bible School items, gave money to people who needed groceries and bought two vehicles for church members. The generosity didn’t stop at the church. Allen also paid for trips and cruises for fellow employees, bought expensive gifts for credit union employees through secret Santa and gave gifts of cash, a TV, mixer, fire pit, jewelry and outdoor furniture. She also gave expensive gifts to employees at the annual picnic.
Allen is free on a $20,000 bond and will be sentenced Sept 26.
Source: Johnson City Press
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