Former credit union CEO handed two year prison sentence for failing to pay taxes on embezzled cash
HARRISBURG, Pa. – Sherry Garner, 54, Red Lion, and former CEO-Manager of the Harley Davidson York Federal Credit Union in York, was sentenced today in federal court to two years in prison for evading income taxes on money she embezzled from the Credit Union.
According to the United States Attorney, Garner previously plead guilty on February 19, to a Criminal Information charging her with bank larceny and tax evasion. She embezzled $252,106 from the HD York Credit Union between 2010 and 2013 and failed to report $70,983 in stolen income on her federal income tax return for 2011, thereby evading $19,069 in federal income taxes.
In a plea agreement filed with the Information, Garner also admitted the total tax loss to the IRS on her unreported $252,106 income ($58,034 in 2010, $70,983 in 2011, $64,308 in 2012, and $58,780 in 2013) was $62,704. Garner agreed to make restitution to both the York Federal Credit Union and the IRS as ordered by the Court.
Judge John E. Jones also ordered Garner to pay $252,106 in restitution to CUMIS Insurance Society, Inc. and $62,704 to the IRS. Garner is to surrender to the Bureau of Prisons on September 19th to begin serving her sentence.
The case was investigated by the Harrisburg Offices of the Internal Revenue Service and the Federal Bureau of Investigation.