Former State Credit Union Advisor Indicted for Embezzling Money From Credit Union

KANSAS CITY, KAN. – A Kansas woman was arraigned today on federal charges in connection with a years-long scheme to steal hundreds of thousands of dollars from her employer, Muddy River Credit Union.  Rita Hartman, 68, of Atchison was indicted by a federal grand jury on August 23, 2023.  

According to court documents and other information presented in court, Hartman was the manager of Muddy River Credit Union (formerly Bradken Federal Credit Union) from the early 1990s through January 2021. Muddy River served the employees of the Bradken foundry located in Atchison, Kansas.  In 2013, the Governor of the State of Kansas appointed Hartman to the Kansas Credit Union Council, which advises the Kansas Department of Credit Unions on issues and needs of credit unions.  

As manager, Hartman had responsibility for and control over all aspects of Muddy River’s finances and books and records.  From at least 2010 through December 2020, Hartman is accused of using her position to steal money from Muddy River.  Hartman allegedly did so by crediting fraudulent deposits and loan payments to her or her relatives’ accounts or by stealing cash deposits, then concealing her conduct by altering Muddy River’s books and records, and falsifying information submitted to Muddy River’s regulators.  

The Federal Bureau of Investigation (FBI) investigated the case.

Assistant U.S. Attorney Ryan J. Huschka is prosecuting the case.

An indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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