Pocono News Section

Former Bank Worker Pleads Guilty to Embezzlement

Former Bank Worker Pleads Guilty to Embezzlement - Monday, March 29, 2010 at 04:08AM EST

Reported by: Jeremy Deebel
Monday March 29 2010
Normal 0 MicrosoftInternetExplorer4 WILLIAMSPORT, LYCOMING COUNTY -- A former bank employee pleaded guilty to embezzlement charges Monday.

Family members attempted to shield 54-year-old Mary Ann Knecht as she walked out of federal court in Williamsport.

Knecht pleaded guilty to embezzling $750,000 over the past 17 years. The crimes happened while she worked as an employee of First Keystone National Bank in Berwick.

Many people couldn't believe what happened. Anthony Russo is a First Keystone customer from Berwick. He said, "I'm surprised it went on for so long without her getting caught and it was a large amount of money."

According to a grand jury indictment, Knecht skimmed money from the bank's general ledger in amounts ranging from $2,500 to $10,000. She would deposit the money into her personal bank account and some business accounts in her husband's name. Knecht then falsified or destroyed documents to cover her trail.

Investigators say she used the money to pay off debts and buy gifts for friends and relatives. In exchange for Knecht's guilty plea, federal attorneys say they will ask the court to impose the minimum allowable sentence. That would require Knecht to serve about 33-41 months in prison, and pay back the money she stole.

Officials at First Keystone National Bank declined to comment on Knecht's guilty plea. But they did want customers to know their money is protected. First Keystones Chief Operating Officer Matthew Prosseda noted, "I'd like to assure all our customers that their deposits are safe here in the bank. She manipulated accounts of the bank but had no effect on customer accounts."

Mary Ann Knecht will be sentenced later this year. She will be barred from working at any federally-insured financial institution in the future.