A woman accused of stealing $741,362 from Corry Area Schools Federal Credit Union is expected to accept a plea deal on Tuesday, Dec. 20, at the Erie Federal Courthouse.
Karen Schenck, 50, of 325 Lottsville-Niobe Road, Bear Lake, has reached an agreement with the U.S. attorney's office and will appear before U.S. District Judge David S. Cercone.
Schenck, who has not yet been arrested, is facing embezzlement charges for stealing the total alleged amount in funds, credits and securities over a seven-year time period while she served as manager at the credit union, 22 S. First Ave.
The embezzlement took place between January 2008 and August 2015 after a routine audit caught the suspicious activity, according to the U.S. Attorney's office, which then immediately began a five-month investigation.
Schenck was a bonded employee and the credit union was able to recover $500,000 in insurance money. Also, officials from the Federal Bureau of Investigation have seized property from Schenck's home, which allowed the credit union to recover the remaining $241,362.
According to officials at the credit union, Schenck began her employment there as a teller in the mid 1990s. She was promoted to manager shortly before the illegal activity started occurring in 2008.