The former operations manager of Billings-based Altana Federal Credit Union pleaded guilty in federal court Wednesday to embezzling more than $60,000 while employed there, U.S. Attorney Jesse Laslovich said in a news release.
The defendant, Kelly Jo Muzzana, 40, pleaded guilty to a charge of embezzlement by a credit union employee. Muzzana faces a maximum of 30 years in prison, a $1 million fine and five years of supervised release.
Federal prosecutors alleged in court documents that Muzzana embezzled more than $60,000 of credit union money by making unauthorized purchases with debit cards, credit cards and accounts attached to members while she was the operations manager.
She allegedly personally processed customers' fraudulent spending claims to avoid detection, preventing many customers from filing police reports, according to prosecutors.
Muzzana was responsible for Altana's fraud-alert process, which allowed her to create duplicate bank cards for customers' accounts and bring them home, prosecutors stated. She also took cards Altana received in the mail that couldn't be delivered to customers.
Muzzana used those cards to make purchases online and in stores around Billings.
Altana reimbursed the $60,000 stolen from customers through its insurance from the National Credit Union Administration.
U.S. Magistrate Judge Timothy J. Cavan presided. A sentencing date will be set before U.S. District Judge Susan P. Watters. The court will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. Muzzana’s release was continued pending further proceedings.
