Former Credit Union Loan Officer Admits Identity Theft in $100,000 Vehicle Fraud Scheme

Employee allegedly forged executive documents, sold collateral, and concealed transactions through bankruptcy filings.

–

Cedar Rapids, IA – June 8, 2026 – A former Iowa credit union loan officer has pleaded guilty to federal charges after admitting to a scheme that involved identity theft, fraudulent vehicle lien releases, and false statements in bankruptcy court.

Kylie Jo Bench, formerly known as Kylie Jo Parrish, 27, entered guilty pleas on May 27 in federal court in Cedar Rapids to one count of bankruptcy fraud and one count of aggravated identity theft, according to the U.S. Department of Justice.

Federal prosecutors said Bench was hired as a loan officer by a Dubuque-based credit union in 2022 and later refinanced more than $100,000 in existing vehicle loans through her new employer. The loans involved two late-model vehicles—a Ford and a Dodge—that Bench owned jointly with another individual.

According to court filings, just months after refinancing the loans, Bench sold both vehicles to a Cedar Rapids dealership without the credit union’s knowledge. Prosecutors allege she never disclosed the credit union’s security interests in the vehicles and instead provided the dealership with a fraudulent payoff letter.

The letter, which was purportedly signed by a credit union executive and printed on counterfeit credit union letterhead, falsely stated that the loans had been paid in full and carried zero balances. In reality, neither loan had been satisfied at the time of the sales.

Authorities further alleged that Bench later attempted to conceal the transactions during bankruptcy proceedings. In March 2023, she caused a Chapter 7 bankruptcy filing to be submitted that falsely denied transferring property in a manner that benefited an insider. Prosecutors said the sale of the vehicles benefited the co-borrower who remained obligated on the loans.

The case marks the fourth bankruptcy fraud conviction secured this year in the U.S. District Court for the Northern District of Iowa.

Bench remains free on bond pending sentencing. A sentencing date will be scheduled following preparation of a presentence investigation report. She faces a mandatory minimum sentence of two years in federal prison on the aggravated identity theft charge and a potential maximum combined sentence of seven years imprisonment, along with fines of up to $500,000 and a term of supervised release.

The investigation was conducted by the Federal Bureau of Investigation and is being prosecuted by Assistant U.S. Attorney Timothy L. Vavricek.

The case is another example of insider fraud risk within financial institutions, illustrating how employees with access to lending processes and documentation can exploit internal systems when proper controls and oversight fail.

Source: Department of Justice

Former Credit Union Loan Officer Admits Identity Theft in $100,000 Vehicle Fraud Scheme – Former Credit Union Loan Officer Admits Identity Theft in $100,000 Vehicle Fraud Scheme – Former Credit Union Loan Officer Admits Identity Theft in $100,000 Vehicle Fraud Scheme

Former Credit Union Loan Officer Admits Identity Theft in $100,000 Vehicle Fraud Scheme – Police – Police – Arrest – Arrest – Credit Union Collections – Credit Union Collectors – Lending – Fraud – Fraud – Auto Loan – Bankruptcy – Department of Justice