CFO Admits She Embezzled $390,000

(CN) - The former CFO of an Arkansas development corporation admitted she embezzled more than $390,000 from the program, federal prosecutors said.

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Debra Shannon, 56, of Pocahontas, Ark., pleaded guilty to a one-count felony information accusing her of mail fraud, the U.S. Attorney's Office in Little Rock said in a statement.

She faces up to 20 years in prison and a $250,000 fine.

Shannon worked for the Black Area River Development Corp. for 37 years, writing checks from payroll accounts to pay employees and vendors.

Shannon admitted that she wrote checks to herself from several checking accounts, mostly from the payroll account.

"She would then obtain the bank statements after they were received through the mail, disguise the payee on the canceled check, photocopy the disguised checks, and put the altered checks in BRAD's records," prosecutors said in the statement.

"This activity began on or before December 28, 2001 and continued until May 2012. The total amount of checks embezzled was $390,735.65."

BRAD administers low-to-moderate income housing programs in Clay, Lawrence, and Randolph Counties.

Shannon is free on bond pending sentencing, which has yet to be set.

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