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Stacey Shaw, former president/CEO of the $7.6 million IBEW Local Union 712 Federal Credit Union, will be sentenced in August after pleading guilty to a $2 million embezzlement scheme before a U.S. District Court judge in Pittsburgh on Friday.
She also pleaded guilty to one misdemeanor count of failing to file a federal tax return, according to a plea deal agreement. The second misdemeanor count of failing to file a federal tax return was dropped by federal prosecutors.
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Shaw's lawyer, Samir Sarna, declined to comment when reached by CU Times.
Starting in May 2017, just five months after she became CEO, Shaw opened credit cards issued by the Beaver, Pa.-based credit union and made $2,099,437 in charges and cash advances through March 2020, according to federal prosecutors.
Because she failed to report her ill-gotten income on her federal tax returns, she also will be held liable to pay the IRS $519,394, plus interest, according to the plea deal.
Last May, the NCUA liquidated IBEW Local Union 712, which was chartered in 1964 and served nearly 3,000 members. The $26.2 million West Penn P&P Federal Credit Union, also of Beaver, immediately assumed IBEW Local Union 712's assets, member shares and loans.
Federal prosecutors did not say in court documents how the embezzlement was exposed, how Shaw concealed the theft or how she spent the credit union's funds.
In March 2020, the credit union posted a loss of $2.3 million, according to NCUA financial performance reports.
Shaw is currently free on a $50,000 unsecured bond.
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Peter Strozniak
Credit Union Times reporter covering credit union operations, fraud, M&As, leagues, business continuity, and breaking news.
