Greater Eastern Credit Union CEO admits to embezzling $1 million

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The CEO of a Johnson City-based credit union has signed a plea agreement in which she admits to embezzling more than $1 million, according to federal court records filed earlier this month.

The plea agreement shows Sherry Ann Allen has agreed to plead guilty to two charges:  theft and attempted tax evasion.

Greater Eastern Credit Union alerted customers of the investigation involving the longtime employee in February.

According to court documents, Allen has admitted to embezzling nearly $1.2 million over a six-year period and using that money to cover her credit card debt, buy cars, go on cruises and trips, buy a timeshare, camper, clothes and jewelry. The plea agreement also says she donated some of the stolen money to charitable causes and used some of the money to pay for cruises, trips and expensive gifts for co-workers.

The federal document says Allen cooperated with the investigation.

The maximum punishment for the theft charge is 30 years in prison and a $1 million fine and five years in prison and a $100,000 fine for the attempted tax evasion charge, according to the plea agreement.

The plea agreement says the restitution amount of $1,195,596 “will be offset by the net proceeds obtained by the victim credit union after the liquidation of all assets seized or turned over by the defendant.”

A plea hearing is set for June 20.

To read the plea agreement click HERE

To read the information click HERE

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