A Johnson City-based credit union CEO is on suspension without pay – accused of using credit union money for personal benefit.
The Johnson City Police Department confirmed, after receiving an initial complaint, the Federal Bureau of Investigation has taken over the investigation related to Sherry Allen.
Greater Eastern Credit Union alerted customers to the investigation in a letter on February 16.
In that letter, Greater Eastern Credit Union said an investigation revealed over the last 7 years, Sherry Allen who worked at the credit union for 30 years – used $1.2 million in credit union funds for unauthorized purposes and personal benefit.
Greater Eastern Credit Union interim CEO Danielle Books told us the incident was reported to regulators, including the National Credit Union Association and Tennessee Department of Financial Institutions.
The letter to Greater Eastern Credit Union members said no member accounts were impacted and that insurance would cover the losses.
As a result, the credit union said stronger policies will be implemented to ensure a similar event does not happen again.
We reached out to Johnson City police who told us the Federal Bureau of Investigation has assumed the case.