NORTON SHORES, Mich.–Kathryn Sue Simmerman, the longtime manager of Shoreline FCU in Norton Shores here, has admitted to the embezzlement of almost $2 million from the credit union's cash vault over a 13-year period, according to federal court documents.
Simmerman has agreed to plead guilty to embezzlement by a credit union employee, which is punishable by up to 30 years in federal prison, and structuring, punishable by up to five years. Structuring means deliberately avoiding federal reporting requirements by making financial transactions – in her case, deposits into accounts she controlled – of less than $10,000 each.
According to the plea agreement, Simmerman admits embezzling $1.945 million from at least Oct. 1, 2001, through Feb. 3, 2015 by removing cash from the $16.3-million Shoreline's vault and concealing it in her purse. Some of the money, according to the plea, was deposited into Shoreline accounts that were controlled by Simmerman. Other funds were used for personal use.
According to authorities, Simmerman was able to hide the embezzlement from auditors and Shoreline's supervisory committee by manipulating financial statements to "make it appear that the missing cash was on deposit with Shoreline's correspondent bank."
Simmerman was fired by the credit union on Feb. 27, 2015, after having been named manager in 2006, five years after she began embezzling, the indictment states. As part of the deal, Simmerman has agreed to repay $200,000 in restitution before she is sentenced. She has also agreed to pay full restitution in the future.