A former credit union manager in Kansas has been sentenced to more than five years in federal prison for embezzling over $750,000 from her employer, Muddy River Credit Union. Rita Hartman, 71, of Atchison, pleaded guilty to making false entries in federal credit union records.
Hartman managed the credit union for three decades and had control over its finances. Between 2007 and 2021, she stole approximately $346,000 in customer cash deposits and fraudulently credited about $430,000 to accounts belonging to herself or her relatives without actual payments being made. She concealed these actions by altering financial records and submitting false information to regulators. When an audit was mandated, Hartman submitted fraudulent documents and delayed the process.
Her actions depleted the credit union’s capital and left it insolvent, which led to a merger with another institution so operations could continue.
In addition to her role at the credit union, Hartman was appointed in 2013 by the Governor of Kansas to serve on the Kansas Credit Union Council. She is also a former mayor and city commissioner of Atchison. As part of her sentence, all state pension payments Hartman receives during her imprisonment will go toward paying $778,361 in restitution.
“For decades, Rita Hartman was a prominent, well-respected figure in Atchison, Kansas,” said U.S. Attorney Ryan A. Kriegshauser. “Instead of living up to the high regard that people in the community had for her, she exploited their trust and used it to perpetuate her embezzlement scheme and line her pockets with stolen funds.”
“The defendant was entrusted with the fiscal responsibility of the credit union’s members. In using the money for her personal benefit, the defendant’s actions were a betrayal of that trust,” said Special Agent in Charge Stephen A. Cyrus of the FBI Kansas City Field Office. “This sentencing demonstrates the FBI’s longstanding commitment to working financial fraud investigations and to hold individuals accountable for their actions.”
The Federal Bureau of Investigation conducted the investigation into this case. Assistant U.S. Attorneys Ryan J. Huschka and Michelle McFarlane prosecuted.
