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Former Atchison leader, credit union advisor, accused of embezzlement

Rita Hartman

(KAIR)--A longtime Atchison leader, including time served as a City Commissioner and Mayor, has been indicted for embezzling credit union money while serving as State Credit Union Advisor.

According to a release from the U.S. Attorney's Office for the District of Kansas, Rita Hartman was arraigned Monday on federal charges related to what the release calls "a years-long scheme to steal hundreds of thousands of dollars from her employer, Muddy River Credit Union."

The 68-year-old Hartman was indicted by a federal grand jury on August 23.

According to court documents and other information presented in court, Hartman was the manager of Muddy River Credit Union, formerly Bradken Federal Credit Union, from the early 1990s through January 2021. Muddy River served the employees of the Bradken foundry located in Atchison.

In 2013, the then Kansas Governor appointed Hartman to the Kansas Credit Union Council, which advises the Kansas Department of Credit Unions on issues and needs of credit unions.

The release states that as manager, Hartman had responsibility for and control over all aspects of Muddy River's finances and books and records.
From at least 2010 through December 2020, Hartman is accused of using her position to steal money from Muddy River, allegedly doing so by crediting fraudulent deposits and loan payments to her or her relatives’ accounts or by stealing cash deposits, then concealing her conduct by altering Muddy River's books and records, and falsifying information submitted to Muddy River's regulators.

The case was investigated by the FBI.

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