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Patty Lynn Mavrakis, 63, of Belle Vernon, Pa., pleaded not guilty last week in U.S. District Court in Pittsburgh to felony charges of embezzlement from a credit union, wire fraud and the use of fire to commit a federal felony.
Mavrakis, a former branch manager for the $94.9 million Valley 1st Community Federal Credit Union in Monessen, allegedly started a fire in the safe on Sept. 6, 2016, and falsely claimed to her supervisor that an electrical wire on the safe's alarm sparked a fire, which destroyed the funds, federal prosecutors for the U.S. Attorney's office for the Western District of Pennsylvania said.
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 a 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 Mavrakis' 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.
Prosecutors alleged in court documents that she used the credit union's funds to pay for personal expenses.
Mavrakis' attorney, Daniel J. Cuddy in Pittsburgh, declined to comment when reached Wednesday.
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Peter Strozniak
Credit Union Times reporter covering credit union operations, fraud, M&As, leagues, business continuity, and breaking news.
