Former CU CEO Charged with $156,000 Theft

Former CU CEO Charged with $156,000 Theft
October 21, 2016 Marketing GrafWebCUSO

A plea hearing will be held next week for the former president/CEO of a West Virginia credit union who is accused of stealing more than $156,000.

In court documents filed Thursday by federal prosecutors in U.S. District Court in Wheeling, Kathleen Gramlich, 65, of Valley Grove, was charged with theft from the $5.8 million Ohio County Public Schools Federal Credit Union.

Soon after she departed the credit union in March, the credit union confirmed that the FBI was conducting an investigation.

The alleged theft was uncovered in March after a credit union employee found discrepancies during a routine reconciliation of accounts.

The FBI investigation revealed that between June 2013 and March 2016, Gramlich allegedly stole $156,342 from the credit union and used the funds to pay personal debts.

Court documents, however, do not specify how Gramlich stole the money.

Federal prosecutors also filed forfeiture of property against Gramlich.

At the end of the second quarter, the 886-member credit union posted a net worth of 15% equal to peer average and an ROAA of -0.96%, lower than peer average of 0.09%, according to NCUA financial performance reports.

Ohio County Public Schools FCU also recorded a new income loss of $27,809 at the end of the second quarter and a net income gain of $6,706 at the end of the first quarter.

The credit union also posted a $43,954 under its provision for loan losses at the end of the second quarter, substantially higher than the $1,000 under the provision for loan losses posted at the end of the first quarter.