Former CEO pleads guilty to $1.1 million theft
A September sentencing hearing is set for Sherry Ann Allen.
Sherry Ann Allen, the former CEO of the Greater Eastern Credit Union in Johnson City, Tenn., pleaded guilty to theft and tax evasion Wednesday in U.S. District Court in Greenville, Tenn.
Her sentencing hearing is scheduled for Sept. 26.
Although Allen faces a maximum prison sentence of 35 years and $1.1 million in fines, she is likely to receive a reduced sentence for her guilty plea and other considerations based on federal guidelines.
Allen admitted to stealing more than $1.1 million from the credit union by using a hidden transaction feature, knowing no one reviewed hidden transactions, enabling her to move large sums of money into and out of accounts she controlled over seven years.
She admitted to using the stolen funds to pay for her credit card bills, her cars, her clothes, her jewelry, and she funded cruises and trips for her church’s youth group and credit union employees. Johnson also handed out expensive gifts to employees at GECU’s Christmas party and at its annual picnic.
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