SIOUX CITY, Iowa -- Linda Zech, 53, of Spencer, Iowa, was sentenced to more than five years in prison after embezzling approximately $770,000 from a Spencer credit union.
Zech pled guilty to one count of financial institution fraud and one count of money laundering Dec. 4, 2007, admitting she defrauded the credit union in several ways. She fraudulently dispersed credit union checks to family members and third parties, made fraudulent credit union loans in the names of family members and third parties and took cash deposited by credit union members.
She was sentenced to 63 months imprisonment, assessed $200 and ordered to make $770,000 in restitution to the credit union, by U.S. District Court Judge Mark Bennett. Bennett found Zech had approximately $20,000 in equity in a rental property and ordered her to pay that amount to the credit union within 120 days.
She must also serve a three-year term of supervised release after her prison term.
Zech was released on the bond previously set and is to surrender to the Bureau of Prisons on a date yet to be set.
