Judge Brody also ordered the former credit union employee to pay $822,155 in restitution, which includes the cost of the forensic audit incurred by PFFCU.

Spratt initiated his fraudulent loan scheme in October 2018 and, by February 2020, he began to siphon funds from members’ accounts. In October 2022, while he was being interviewed by a PFFCU security/loss prevention specialist, Spratt confessed to his crimes and expressed relief at being caught because it would force him to address his gambling problems.

Although some losses resulted from fraudulent loans, a significant portion stemmed from Spratt’s theft from members’ accounts. He cultivated relationships with members, some of whom considered him not just their personal banker but also a friend, prosecutors said.

To avoid detection, Spratt limited his victims’ access to banking services by discontinuing their paper bank statements. This allowed him to control the flow of financial information and forced many to interact with him personally to address account issues, enabling him to manipulate the outcome of their inquiries.

Federal prosecutors also revealed that Spratt visited some members’ homes uninvited after the fraud was discovered, promising to repay them.

From May 2021 to September 2022, for example, Spratt withdrew $473,809 from two PFFCU accounts belonging to R.C., L.C., and their daughter M.D. After the fraud was uncovered, he visited their home uninvited and promised to repay them incrementally. He also asked R.C. to tell PFFCU that she had authorized the fraudulent withdrawals.

Spratt also appeared uninvited at another PFFCU member’s home after it was revealed he had stolen $186,315 from M.R.'s account. He promised to repay her and admitted to having a "crush on her" before her husband intervened and ordered him to leave.

PFFCU’s policy allows branch sales representatives to deposit and withdraw members’ money only if the member is present at the branch and has requested the transaction. To confirm the member’s presence, the representative must provide a copy of the member’s driver’s license to the teller facilitating the transaction. Prosecutors noted that a majority of members’ driver’s licenses are on file at the credit union. Spratt deceived tellers by providing these IDs even when the member was not present, enabling him to steal the funds.

In their sentencing memo to Judge Brody, federal prosecutors recommended a prison term of 27 to 33 months for the bank fraud charge, based on federal sentencing guidelines, and a mandatory 24 months for the aggravated identity theft charge.

“In order to assure that the financial institutions upon which we rely remain solvent and secure, it is necessary that the employees trusted with depositors’ monies are scrupulously honest in handling these deposits,” prosecutors wrote.

“It must be made plain, as a matter of general deterrence to financial institution employees who may be tempted to steal funds in the control and custody of the institution, that doing so subjects them to significant penalty. For these reasons, imposition of a sentence within the applicable guidelines range is appropriate.”

However, Spratt’s attorney, Arthur Donato of Media, Pa., argued for a one-day sentence, citing mitigating factors and asserting that Spratt poses no threat to the community.

“His conduct is largely the product of a severe and persistent depression and gambling problem,” Donato wrote on behalf of is client. “Put another way, if it were not for his significant mental challenges in this regard, Mr. Spratt would not have committed any criminal offense.”

Donato stated that Spratt deeply regrets his actions and has committed to abstaining from gambling, noting his client's significant personal growth since seeking help for his addiction. Several character reference letters from Spratt’s friends and relatives were also submitted to the court.

Judge Brody was apparently swayed by Donato’s memo.

Spratt received three months in prison, and for the aggravated identity theft charge, he was sentenced to 24 months, as mandated by law. The sentences will be served consecutively.

When reached by CU Times, PFFCU and Donato declined to comment.