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Former Ohio County Schools Credit Union Head To Serve One Day in Jail

Gramlich convicted of embezzling $156,000

From Staff Reports

WHEELING — Kathleen Gramlich, the former director of Ohio County Schools Public Credit Union who pleaded guilty to embezzlement, was sentenced Friday to one day in jail and ordered to pay a $100 fine.

She’ll also be required to make restitution in the amount of $156,342.60. After serving one day in the U.S. Marshals’ holding facility in Wheeling, Gramlich will be on supervised release for five years. Gramlich also must participate in a mental health treatment program as directed by her probation officer.

She admitted to stealing from the credit union and using the funds to pay personal debts. Assistant U.S. Attorney Jarod Douglas prosecuted the case, and the FBI and West Virginia State Police investigated it.

U.S. District Judge John Preston Bailey presided at Friday’s sentencing hearing.

Gramlich, 65, of Valley Grove had faced up to 30 years in prison for her crimes, which occurred between June 2013 and March 2016.

The embezzlement first came to light last year after a routine reconciliation of accounts by an employee of the credit union revealed wrongdoing. It was confirmed by an auditor from the West Virginia Credit Union League, and Gramlich later resigned.

Before the FBI and West Virginia State Police ultimately got involved, the credit union hired William Wilmoth, a former federal prosecutor and an attorney with the law firm of Steptoe and Johnson, to investigate.

The credit union serves about 1,000 members comprised of current, former and retired employees of the school system and their families.

William Ihlenfeld, who was the U.S. Attorney for the Northern District of West Virginia at the time, previously said no credit union customers were in jeopardy of losing their funds because the facility is insured by the National Credit Union Administration Board.

“Because of this insurance, and because of the way that the scheme was perpetrated, the funds of account holders are not, and never were, in jeopardy,” Ihlenfeld said in October, when Gramlich was indicted.

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