"These expenses were incurred in responding to requests from the investigative agents, compliance with subpoenas and voluntary requests, and attendance at certain proceedings," prosecutors wrote in court documents. "The restitution statutes make clear that the credit union is entitled to an order of restitution to compensate them for their reasonable attorney's fees and accountants' fees and employee time incurred in connection with the criminal prosecution. The amount sought herein by the government is far less than the total amount of expenses incurred, however that is due to the fact that a large portion of the accounting and legal expenses were incurred prior to the involvement of the criminal authorities and related in part to a civil lawsuit that resulted in a settlement."

The former executive has paid restitution of $254,532, court documents showed. U.S. District Court Judge Janet C. Hall in New Haven issued the additional restitution order on Oct. 3.

Kewalis diverted credit union funds to various accounts held in her name, including her Christmas Club and Vacation Club accounts, using the internal accounting system to charge those stolen funds against Skyline Financial's group health insurance and other employee benefits. Dividing the stolen funds among a number of accounts helped to camouflage her theft, prosecutors said.

Kewalis also booked the charges of stolen funds against the credit union's general ledger as various expenses that she knew were for Skyline Financial's operations such as ATM settlements, insurance payments and the purchase of COVID-19 cleaning supplies, court documents showed.

To cover her credit card payments on numerous accounts, she transferred funds from Skyline's general ledger, making sure she kept the cards off the delinquency list so that any high credit card balances would not be detected by the credit union's board, prosecutors said.