Former Paducah credit union manager pleads guilty to embezzling - KFVS12 News & Weather Cape Girardeau, Carbondale, Poplar Bluff

Former Paducah credit union manager pleads guilty to embezzling more than $600K

PADUCAH, KY (KFVS) -

A former Paducah, Kentucky credit union manager pleaded guilty to embezzlement on Monday, Sept. 14.

Debra C. Pyfrom, the former manager of the International Brotherhood of Electrical Workers Local 816 Federal Credit Union, pleaded guilty to a single charge of bank fraud.

She agreed to pay restitution in the amount of $600,520.16, according to U.S. Attorney John E. Kuhn, Jr.

Pyfrom pleaded guilty to executing a scheme for an unknown period of time, up until she was arrested and terminated by her employer in July 2014. During that time, Pyfrom admitted to embezzling and stealing money from IBEW and its members totaling more than $600,000.

She admitted to embezzling and stealing money through manipulation of the credit union accounts, false loan payments, misappropriation of cash and from loans taken out in members' names without their knowledge.

U.S. Attorney Kuhn said Pyfrom admitted to stealing money from IBEW credit union members' accounts to cover her personal bills and those of her daughter, boyfriend and others, who had personal deposit accounts at the credit union. Pyfrom would cover these withdrawals with false, computer entry only deposits.

Pyfrom also admitted to issuing loans to herself and to her daughter and posting false payments to conceal fraud and make payments appear current on IBEW's books.

Lastly, she admitted to taking out loans in the names of other IBEW account holders without their knowledge and using that loan money for her own benefit.

Kuhn said the balances on these loans were never repaid; rather Pyfrom would manipulate the entries in the IBEW books in order to falsely show that the loan payments were current.

If convicted of the charge at trial, Pyfrom could be sentenced to 30 years in prison, five years of supervised release and fined a maximum of $1,000,000.

This case is being prosecuted by Assistant U.S. Attorney Nute A. Bonner and is being investigated by the McCracken County Sheriff's Office and the Federal Bureau of Investigation.

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