11/11/2025

Former credit union manager sentenced to prison for decade-plus embezzlement scheme

United States Attorney's Office District of Kansas

KANSAS CITY, KAN. – A federal judge sentenced a former Kansas credit union manager to 63 months in prison for stealing more than $750,000 from her long-time employer and substantially jeopardizing the safety and soundness of the financial institution.

According to court documents, Rita Hartman, 71, of Atchison pleaded guilty to one count of false entries in federal credit union records.

For 30 years, Hartman was the manager of Muddy River Credit Union (formerly Atchison Casting Credit Union and Bradken Federal Credit Union), which served the employees of a foundry located in Atchison, Kansas. Hartman’s position gave her control over all aspects of Muddy River’s finances. Between 2007 and 2021, she abused the trust that Muddy River granted her to steal approximately $346,000 in customer cash deposits. Hartman also fraudulently credited approximately $430,000 in deposits and loan payments to her or her relatives’ accounts when no payments or deposits had been made. Hartman concealed her conduct by altering ledgers and records and by falsifying information submitted to Muddy River’s regulators.  She obstructed efforts to uncover her fraud by submitting fraudulent documents to regulators and delaying a mandated audit.