Karen McGinnis, a former tax collector for Fairview Township in Pennsylvania, pleaded guilty to embezzling more than $400,000 in property taxes. The plea was entered before United States District Judge Karoline Mehalchick, according to the U.S. Attorney’s Office for the Middle District of Pennsylvania.
McGinnis, 46, served as tax collector from March 2023 until January 2025. During this period, she was responsible for collecting property taxes on behalf of Fairview Township, Luzerne County, and the Crestwood School District. She diverted over $400,000 in public funds for her own use.
Luzerne County and the Crestwood School District each received over $10,000 from federal grants and other programs during the time frame in which McGinnis committed the embezzlement.
McGinnis resigned from her position in March 2025. As part of her plea agreement, she will not seek public office for either three years or any term of probation imposed by the court—whichever is longer—and has agreed to repay all stolen funds.
“The role of IRS-Criminal Investigation becomes even more important in embezzlement and fraud cases due to the complex financial transactions that can take time to unravel,” said Yury Kruty, Special Agent in Charge at IRS-Criminal Investigation’s Philadelphia Field Office.
The Internal Revenue Service’s Criminal Investigation Division led the investigation. Assistant U.S. Attorney Kyle A. Moreno is prosecuting the case.
If convicted under federal law for this offense, McGinnis faces up to ten years in prison, supervised release after imprisonment, and a fine. Sentencing will be determined by the judge following federal statutes and guidelines.
