Nita Rae Nirschl, the former president/CEO of the $13.3 million Parsons Pittsburg Credit Union, pleaded guilty to embezzling at least $5 million in U.S. District Court in Wichita, Kan. on Monday.
Although initially charged with 81 felony counts, the 66-year-old former executive pleaded guilty to only three felony counts of embezzlement, money laundering and tax evasion, according to a plea agreement. She also agreed to serve up to five years in federal prison, five years of supervised release and to pay a to-be-determined amount in restitution.
Nirschl's final sentence, however, will be decided in March by a federal judge who is under no obligation to accept the terms of the plea agreement.
Recommended For You
Nirschl began her embezzlement before November 2010. In addition to depositing stolen funds into her personal accounts, she also withdrew the funds from ATMs at casinos at Missouri, Oklahoma, New Orleans and Lake Tahoe.
An FBI investigation was launched sometime after the NCUA made an unannounced examination of the Parsons, Kan. credit union on Jan. 14, 2014. On that day, Nirschl was questioned by an NCUA examiner about her gambling activities, according to an FBI investigator's affidavit.
She told the examiner that during 2012, she and her husband had winnings and losses of $16 million. The FBI affidavit shows that during the month of September 2013, Nirschl made more than $500,000 in ATM transactions, electronic check transactions, ATM point of sale transactions and cash withdrawals at two casinos.
Although the former CEO admitted that she and her husband wagered millions at casinos and typically broke even, she denied gambling with credit union funds when questioned by examiners during the January 2014 audit. In that month, Nirschl was fired but she was not indicted until March 2017.
According to the plea agreement, Nirschl will forfeit a $224,834 house, a 2013 Acura MDX, estimated to be currently worth approximately $17,000, according to Kelly Blue Book and $130,000 in cash. She also agreed to forfeit eight gold coins, 140 one-ounce silver coins, and a Prada handbag. The value of those items was not itemized in court documents.
Federal prosecutors said in the plea agreement that she used the stolen funds to buy these items, including the house and car, but their total value is obviously far below the millions that Nirschl embezzled. The plea agreement does not explain on what or how Nirschl spent the rest of the money.
After the credit union was placed into conservatorship in January 2014, it was merged into the $614 million Golden Plains Credit Union in Garden City, Kan. in March.
© 2025 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
Peter Strozniak
Credit Union Times reporter covering credit union operations, fraud, M&As, leagues, business continuity, and breaking news.
