(KAIR)--A sentencing date awaits, but is not yet set, in the long-running court case involving the former manager of Atchison's Muddy River Credit Union who, the Federal Government says "used her role...to steal at least $844,161.78 to enrich herself and her family," alleging the crimes began "in at least 2007, and almost certainly earlier."
The sentencing hearing for Rita Hartman was held Thursday, October 9 in a federal courtroom, with a notation to the online court document explaining that evidence and witness testimony has been completed, with both parties in the case presenting oral arguments against objections, with the court to take those objections under advisement, with sentencing for Hartman "continued to a day/time set at a later date."
Court documents filed September 30 state that the prosecution is recommending that Hartman be sentenced to 5-years-3-months in prison.
According to the documents, Hartman embezzled money from the credit union, which served the employees of the Bradken foundry located in Atchison, "in three primary ways," with the document saying "first, she stole
physical cash from at least 2010 to 2021 totaling $346,473.13. Second, she fraudulently credited her own and family members’ MRCU share accounts without actually depositing any funds, totaling $381,434.23 from 2007 to 2017." Third, the document says, Hartman "fraudulently reduced family members’ loan obligations when the family member did not actually make a payment, totaling $116,254.42 from 2007 to 2018."
The prosecution, in the sentencing document, says Hartman used "an array of false entries in [the credit union's] records to hide her tracks," keeping the credit union's "general ledger manually, in hard copy, which made it easier for her to conceal her theft."
In outlining Hartman's crimes, the prosecution says the scheme continued until 2021, when a regulator-mandated audit, ordered in 2019, "immediately found discrepancies."
Hartman, the document says, delayed the audit until January, 2021, "abruptly" resigning "just as the audit began."
Hartman, outside of her credit union role, was known for years of Atchison civic involvement, including terms served as the City's Mayor.
She was indicted by a federal grand jury on August 23, 2023.
The FBI investigated.
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