Judith Shimanek, who served as manager and treasurer for the Ark City Teacher’s Credit Union, recently pled guilty to embezzling funds from that organization and has been sentenced to three years in prison and ordered to pay $1 million in restitution.

According to the plea agreement dated Oct. 13, 2021, Shimanek admitted to creating fictitious loans and deposits, then diverting those funds to her own accounts without the knowledge or approval of the credit union.

Federal court records state that she moved approximately $925,654.93 to her personal accounts, along with a fictitious loan in the amount of $22,334.19. The theft occurred between an unknown date through May 7, 2018, according to the indictment.

The plea agreement indicates that the maximum penalty for the embezzlement, a Class B Felony, is 30 years imprisonment, a fine of not more than $1 million and maximum of five years of supervised release.

Shimanek was sentenced on Jan. 7 to 36 months followed by three years on supervised release by U.S. District Judge Eric F. Melgren. He recommended she serve her time at FPC Alderson, a minimum-security prison for female inmates in West Virginia, or at another minimum-security facility.

Shimanek also is forbidden to open any form of credit account. She will not be allowed to participate in any form of gambling or lottery, and will not be permitted to enter any facility where gambling takes place. Shimanek will also be required to participate in a gambling addiction program, an approved mental health treatment program and a cognitive behavioral program.

Shimanek was indicated in April.

Kim Anneler, who serves as acting interim manager for the Ark City Teacher’s Credit Union, said Wednesday that she was not authorized to comment about the case or answer questions about how it affected the credit union.

“That would need to be our board of directors,” she said. “I will need to visit with them and find out who wants to be that contact.”

The indictment states that the teacher’s credit union accounts were insured by the National Credit Union Administration.

She did say that teacher’s credit union had been absorbed by Ark Valley Credit Union three years ago. She declined to share how many members it had, but said it was open to all employees of the education system.

A message left Wednesday for Shimanek’s attorney, David J. Freund, was not returned.

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