WINCHESTER, Ky. – The former CEO of East Kentucky Employees FCU pleaded guilty in federal court to embezzling more than $110,000 from the $27-million credit union.

Brian Tyler created a secret account at the credit union in October 2009 and put $100,000 into it from another account at the institution, according to court records.

Tyler, who shredded documents and eventually created a fake loan to cover the theft, used much of the money to buy a house, according to court records. He also stole other funds from the credit union and used a company credit card for fraudulent purchases, according to a plea deal submitted to the court.

The plea deal said it would be appropriate for Tyler to repay a total of $136,295 to the credit union and its insurance company, which includes the amount of the theft plus legal and auditing costs. He has paid $35,000 so far.

Tyler is scheduled to be sentenced in October.

 

Subscribe Now

Authoritative analysis and perspective for every segment of the credit union industry

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.