Chambersburg Woman Sentenced for $1.7 Million Embezzlement

The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Terry I. Hershey, 39, of Chambersburg, Pennsylvania, was sentenced by United States District Court Judge John Jones to 36 months’ imprisonment, three years’ supervised release, and ordered to pay restitution regarding her embezzlement of $1.7 million from her employer, Custom Power Services, Inc. (CPS), a Chambersburg based manufacturer of battery powered generators. Ms. Hershey was ordered to commence service of her sentence by September 27, 2010.

According to United States Attorney Peter J. Smith, Ms. Hershey was employed as the account manager for CPS and was responsible for paying bills and making entries into CPS’s financial records. Between April 2002 and September 2009, she issued nearly 300 company checks to herself and her creditors to pay personal expenses. She concealed the embezzlement by making false entries into CPS’s records indicating that the checks were for legitimate business expenses.

In connection with the sentencing, Hershey forfeited $100,000 in cash, a 2009 Volkswagon automobile, a 2009 Harley Davidson motorcycle, three time shares at Disney’s Hilton Head Island Resort, an undeveloped property located in Franklin County, and an IRA containing $3,606. The forfeited items will go toward compensating CPS for its loss. Ms. Hershey will remain liable to pay any outstanding balance of $1,701,684.59 in restitution.

Ms. Hershey was charged and pled guilty in March 2010.

The case was investigated by the FBI and was prosecuted by Senior Litigation Counsel Bruce Brandler.