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A former credit union manager who staged a fire in a branch safe to conceal her theft of more than $300,000 in cash will be sentenced in October, according to the U.S. Attorney's office for the Western District of Pennsylvania in Pittsburgh.
Patty Lynn Mavrakis, 65, of Belle Vernon, was originally charged with embezzlement, wire fraud and the use of fire to commit a federal felony in September 2021. She initially pleaded not guilty to the charges.
In January 2023 after a change of plea hearing was cancelled, Mavrakis was ordered to undergo a mental health evaluation to determine whether she was competent to stand trial.
After the mental health evaluation concluded, Mavrakis was competent to understand the nature and consequences of the legal proceedings against her and she pleaded guilty to wire fraud in federal court on Wednesday. The other two charges are expected to be dropped by prosecutors. Nevertheless, she acknowledged her responsibility for the offense of using fire to commit a federal felony, which will be considered in calculating her prison term, according to the plea agreement.
Mavrakis was the branch manager for the $101 million Valley 1st Community Federal Credit Union in Monessen.
When the branch was closed on Sept. 5, 2016, (Labor Day), Mavrakis accessed the safe and left with multiple boxes, one of which contained cash, according to prosecutors. The next morning, she arrived at the branch before other employees and staged a fire in the safe.
"As the only witness to the fire, Mavrakis falsely claimed that an alarm wire 'caught on fire' and consumed $340,200 in cash," prosecutors said in a prepared statement.
On the same day, Mavrakis submitted an insurance claim to CUMIS and again falsely claimed that an alarm wire caused the fire. The insurance company processed and paid the claim.
Federal prosecutors did not say why it took five years to bring charges against the former credit union employee.
According to the plea agreement, Mavrakis is liable for $399,230 in restitution, which includes $394,230 to CUMIS and $5,000 to Valley 1st Community.
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Peter Strozniak
Credit Union Times reporter covering credit union operations, fraud, M&As, leagues, business continuity, and breaking news.
