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A former branch manager will be arraigned Sept. 1 on allegations that she started a fire in a safe of a Pennsylvania credit union branch to cover up her theft of more than $300,000 and then defrauded CUNA Mutual Group to pay an insurance claim for the stolen funds.
On Sept. 6, 2016, Patty Lynn Mavrakis, 63, of Belle Vernon, allegedly started a fire in the safe of the $94.9 million Valley 1st Community Federal Credit Union in Monessen, Penn., and falsely claimed to her supervisor that an electrical wire on the safe's alarm sparked a fire, which destroyed the funds. The next day, according to court documents, Mavrakis filed an initial claim with CUNA Mutual Group, and on Sept. 17, completed and faxed a proof of loss form, signed by her and notarized, that the fire caused the loss of $340,200.
By December, CUNA Mutual Group paid an insurance claim for the funds allegedly stolen by the former branch manager and for the property damage that resulted from the fire.
Federal prosecutors did not say how or when Mavraskis' alleged crimes were detected. The FBI and the Bureau of Alcohol, Tobacco, Firearms, and Explosives conducted the investigation leading to the indictment in this case, the U.S. Attorney's office for the Western District of Pennsylvania said.
Prosecutors alleged in court documents that she used the credit union's funds to pay for personal expenses.
The former credit union branch manager will be arraigned next month on three felony charges of embezzlement from a credit union, wire fraud and the use of fire to commit a federal felony.
A lawyer for Mavraskis was not listed on the federal docket.
Valley 1st Community did not respond to CU Times' request for comment on Monday. CUNA Mutual Group said it does not comment on any pending litigation.
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Peter Strozniak
Credit Union Times reporter covering credit union operations, fraud, M&As, leagues, business continuity, and breaking news.
