Former credit union manager Debra C. Pyfrom pleaded guilty Monday in U.S. District Court in Paducah, Ky. for embezzling more than $600,000 from the $6.3 million International Brotherhood of Electrical Workers Local 816 Federal Credit Union, according to federal prosecutors.
In June 2014, she admitted to Kentucky police detectives and NCUA auditors that she stole more than $100,000 over two years. At the time of her arrest and initial theft charges in July, an audit of the credit union's finances was under way.
However, it wasn't until a year later in May 2015 when federal prosecutors finally filed an indictment against Pyfrom that accused her of stealing more than $600,000. The theft occurred between February 2006 and July 2014.
Recommended For You
According to the indictment, which charged Pyfrom of one count of bank fraud, she misappropriated deposits made by credit union members for the benefit of herself, her friend and family members.
Pyfrom admitted to stealing money from accounts of credit union members to cover her personal bills and those of her daughter, boyfriend and others, who also held credit union accounts, prosecutors said.
The former credit union manager also reported false loan payments to her outstanding loan balances and the outstanding loan balances of her friends and family members.
Additionally, she created fictitious loans in the names of credit union members and used those funds to benefit herself, friends and family members, according to the indictment. Pyfrom also misappropriated cash accounts.
On July 10, the NCUA liquidated the cooperative and discontinued its operations after determining it was insolvent.
In August 2014, the $199 million C-Plant Federal Credit Union in Paducah, Ky. purchased the loans of IBEW Local 816 FCU and is now serving its 900 members.
© 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.
