- Associated Press - Tuesday, April 15, 2014

BURLINGTON, Vt. (AP) - The attorney for the former manager of the now-closed Border Lodge Credit Union in Derby says his client didn’t use any of the money she has pleaded guilty to embezzling to support a lavish lifestyle.

Fifty-nine-year-old Debra Kinney of Derby Line was sentenced Monday in U.S. District Court in Burlington.

Kinney’s attorney, David Sleigh, says the problems began when she started transferring money between accounts to help members. The situation then started to “snowball.”

Prosecutors say Kinney defrauded account holders of $633,000.

Prosecutors say that in November 2012 FBI agents and others searched the credit union and found evidence of widespread fraud and misappropriation of funds. Kinney was indicted last June.

Prosecutors asserted that Kinney defrauded account holders over several years by writing unauthorized checks.

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