A former credit union manager in Kansas has been sentenced to more than five years in federal prison for embezzling over $750,000 from her employer. Rita Hartman, 71, of Atchison, pleaded guilty to one count of making false entries in federal credit union records.
Hartman managed Muddy River Credit Union—previously known as Atchison Casting Credit Union and Bradken Federal Credit Union—for three decades. The institution served employees of a foundry in Atchison, Kansas. Between 2007 and 2021, Hartman used her position to steal approximately $346,000 in customer cash deposits and fraudulently credited about $430,000 in deposits and loan payments to accounts belonging to herself or relatives when no such payments had been made. She covered up the theft by altering financial ledgers and falsifying information submitted to regulators. Efforts to uncover the fraud were further obstructed by Hartman submitting fraudulent documents and delaying a required audit.
The embezzlement left Muddy River Credit Union without capital and insolvent, which forced it to merge with another credit union so operations could continue.
In addition to her role at the credit union, Hartman was appointed in 2013 by the Governor of Kansas to serve on the Kansas Credit Union Council. She is also a former mayor and city commissioner of Atchison. As part of her sentence, all state pension payments Hartman receives during imprisonment will be directed toward paying $778,361 in restitution.
“For decades, Rita Hartman was a prominent, well-respected figure in Atchison, Kansas,” said U.S. Attorney Ryan A. Kriegshauser. “Instead of living up to the high regard that people in the community had for her, she exploited their trust and used it to perpetuate her embezzlement scheme and line her pockets with stolen funds.”
“The defendant was entrusted with the fiscal responsibility of the credit union’s members. In using the money for her personal benefit, the defendant’s actions were a betrayal of that trust,” said Special Agent in Charge Stephen A. Cyrus of the FBI Kansas City Field Office. “This sentencing demonstrates the FBI’s longstanding commitment to working financial fraud investigations and to hold individuals accountable for their actions.”
The case was investigated by the Federal Bureau of Investigation (FBI). Assistant U.S. Attorneys Ryan J. Huschka and Michelle McFarlane prosecuted.
