A Spencer woman faces felony charges after turning herself in for embezzling over $100,000 from her employer.
Linda Zech, 52, reported to the Clay County Jail in Spencer and was charged with first-degree theft and criminal mischief. She is accused to keeping cash deposits and making fake loans to steal money from Eaton Employee Credit Union.
Clay County Sheriff Randy Krukow said the abuses may have taken place numerous times over about three years' time.
She has admitted to taking cash that employees would bring in to the credit union - reporting it deposited into their accounts, but pocketing the cash and spending it on her own personal expenses such as food and gas, Krukow said.
Clay County Attorney Mike Houschins said she was writing out loans in the names of various people she knew, without their knowledge. She would keep the money paid from the credit union in the fake loans, and then report that payments were being made when they were not.
A pending audit may have caused Zech to come forward, officials say. She admitted that she has been embezzling funds since 2003. She could face up to 35 years in prison, although her cooperation will be taken into account. The FBI has been notified, and Zech is scheduled to make her first appearance in court tomorrow. It is expected that it will take months to sort the situation out, but Eaton is ensured for up to $1 million and all member accounts will be made right, the company says.