Derby Frauster Get 3

Stanstead Journal - - FORUM -

The­Of­fice of the United States At­tor­ney for the District of Ver­mont stated that De­bra Kin­ney, 59, of Derby Ver­mont was sen­tenced to three years im­pris­on­ment yes­ter­day, fol­lowed by five years of su­per­vised re­lease. Kin­ney also was re­quired to pay full resti­tu­tion, and a for­fei­ture judg­ment of $250,000 was en­tered against her.

De­bra Kin­ney was the man­ager of the Bor­der Lodge Credit Union in Derby, Ver­mont. In Novem­ber 2012, the Federal Bureau of In­ves­ti­ga­tion, along with state and federal bank reg­u­la­tors, searched the credit union and seized the documents and op­er­a­tions of the fi­nan­cial in­sti­tu­tion based on ev­i­dence of wide­spread fraud and mis­ap­pro­pri­a­tion of ac­coun­thold­ers funds. Af­ter an en­su­ing in­ves­ti­ga­tion, the man­ager of the credit union, Kin­ney, was in­dicted for mis­ap­pro­pri­a­tion of credit union funds. Federal credit union reg­u­la­tors per­ma­nently shut down and liq­ui­dated the as­sets of the credit union.

De­bra Kin­ney pled guilty to the federal fraud charges in Jan­uary, 2014. At the sen­tenc­ing hear­ing yes­ter­day be­fore Judge Wil­liam K. Ses­sions III in Burling­ton and in court pa­pers, the United States as­serted that Kin­ney had de­frauded Bor­der Lodge Credit Union ac­coun­thold­ers of over $633,000. Kin­ney’s acts of em­bez­zle­ment oc­curred over a pe­riod of years. Ac­cord­ing to court pa­pers, Kin­ney would fre­quently write checks to her­self or for her ben­e­fit or for that of fam­ily mem­bers drawn from credit union ac­coun­thold­ers with­out au­tho­riza­tion. A sub­se­quent fi­nan­cial in­ves­ti­ga­tion de­ter­mined she re­moved hun­dreds of thou­sands of dol­lars from mul­ti­ple ac­coun­thold­ers. All told, the in­ves­ti­ga­tion re­vealed im­pro­pri­eties with 33 dif­fer­ent ac­counts.

All of the losses of in­di­vid­ual ac­coun­thold­ers were in­sured by the Na­tional Credit Union Ad­min­is­tra­tion which in­sures credit union ac­counts up to $250,000. As part of the liq­ui­da­tion of the credit union, the Na­tional Credit Union Ad­min­is­tra­tion paid ac­coun­thold­ers for losses they suf­fered. To date, Kin­ney has not paid any resti­tu­tion.

The case was in­ves­ti­gated

by the Federal Bureau of In­ves­ti­ga­tion with sig­nif­i­cant as­sis­tance from the Na­tional Credit Union Ad­min­is­tra­tion and the Ver­mont Depart­ment of Fi­nan­cial Reg­u­la­tion.

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