The former manager of a Paducah Federal Credit Union will spend more than 6 years in prison for committing bank fraud.
According to U.S. Attorney John Kuhn, Jr., Debra Pyfrom, the former manager of the International Brotherhood of Electrical Workers (IBEW) Local 816 Federal Credit Union was sentenced to 78 months in prison and must pay restitution of $600,520.16.
Pyfrom plead guilty in September 2015 to executing a scheme in which she admitted to embezzling and stealing money from IBEW and its members. Pyfrom admitted to stealing more than $600,000 for her personal benefit and for the benefit of her daughter, her boyfriend, friends, and family.
The fraud was uncovered in 2014.
Pyfrom told investigators she manipulated credit union accounts, posted false loan payments, misappropriated cash, and took out loans in members’ names without their knowledge.
According to Kuhn, Jr., Prefrom also admitted to stealing money from IBEW credit union members’ accounts to cover her own personal bills along with the bills of her daughter, boyfriend, and others who had personal deposit accounts at the credit union.
She also admitted to issuing loans to herself and to her daughter and then posting false payments on the loan to conceal the fraud.
Finally, Pyfrom admitted to taking out loans in the names of other IBEW account holders without their knowledge and using the loan money for her own personal benefit. She manipulated entries in the IBEW books to falsely show that the loan payments were current.
Because of Pyfrom’s fraud, the IBEW was forced into liquidation by the National Credit Union Administration.