Washington woman pleads guilty to stealing from former credit union
A Washington woman pleaded guilty in federal court to embezzling $478,000 from the former Trailblazer Federal Credit Union that served employees of Washington County.
Catherine M. Linton, 58, of South Main Street Extension, pleaded guilty to one count of embezzlement, according to a news release Wednesday from U.S. Attorney David Hickton.
According to the release, Linton, who entered the plea before Senior U.S. District Judge Donetta W. Ambrose in Pittsburgh, was the former manager of Trailblazer FCU. Federal prosecutors said Wednesday the investigation is continuing. A spokeswoman declined additional comment.
The release said the money was stolen between January 1998 and May 2015.
In July 2015, National Credit Union Administration closed Trailblazer and transferred its assets and members’ accounts to Chrome Federal Credit Union, which has two offices in Washington County.
At the time NCUA liquidated the 60-year-old credit union, it had three employees, was serving 1,535 members and had assets of $4.1 million.
Ambrose scheduled Linton’s sentencing for Oct. 25. She remains free on bond.
According to the U.S. Department of Justice, the law provides a possible sentence of 30 years in prison, a $1 million fine, or both. Under federal sentencing guidelines, the actual sentence is based upon the seriousness of the offense and any prior criminal history of the defendant.
The FBI conducted the investigation that led to Linton’s prosecution. According to court documents, she was charged with the crime in May.
When NCUA announced the closure of the credit union at 70 E. Wheeling St., county employees were taken by surprise.
While many employees were members of Trailblazer, Washington County Deputy Controller Joshua Hatfield said at the time of its closure the county had no oversight over the credit union, which was not staffed by county employees.