Parks Township police arrested the head of a credit union after auditors accused her of stealing nearly $72,000 by taking out fraudulent loans and reimbursing herself for unauthorized expenses.

Anne Hannegan Cruz, 33, of the 1700 block of Wilson Avenue in North Apollo faces eight felony charges: five counts of identity theft and two theft counts as well as a count of forgery. She faces a preliminary hearing Jan. 4 before District Judge James Andring, according to court records.

A lawyer for the PNG Northern Federal Credit Union on Lincoln Street met with police June 8 after a routine audit done in June 2021 uncovered financial improprieties, according to a criminal complaint.

Auditors told police that Cruz was identified as a suspect, according to the complaint. Authorities were told Cruz was hired in 2012 as an assistant manager and became the chief executive officer in 2018.

Police said Cruz was responsible for handling the credit union’s day-to-day activities, which included issuing checks and reconciling the bank account with First Commonwealth Bank.

She also was authorized to write checks on behalf of the credit union. She worked mostly from home, where the organization’s financial files were kept, according to the complaint.

The 2021 examination of credit union records found that reported deposits made into the First Commonwealth account “did not actually reflect the actual deposits,” investigators wrote in the complaint.

They said it appeared as though cash deposits were manipulated and that money was being taken out of the account, according to the complaint.

Police said a case officer assigned by the credit union to review the initial findings discovered:

• A check that was supposed to be deposited on behalf of a credit union member actually was cashed by Cruz. They said it was evidence of a “check-kiting operation,” the complaint said.

• Cruz used credit union money to make payments on loans taken out in the names of credit union members without their knowledge.

• Evidence that Cruz was being reimbursed for personal expenses that were not authorized by the credit union.

• Record keeping was “generally inadequate” and included unsigned notes, underwriting issues and signatures that appeared to have been forged.

Accounts were flagged and marked as “no mail,” which meant the people who had those accounts with the credit union were not receiving statements in the mail, the complaint said.

In July 2021, a private forensic accounting firm was hired to conduct an independent investigation, according to the complaint.

Investigators said the audit found that Cruz was able to steal nearly $50,000 by issuing loans in the name of credit union members without their knowledge or signatures on the loan applications, the complaint said.

Investigators said Cruz tried to hide the loans by manipulating bank deposit slips and the manual check register she maintained. She also is accused of hiding the existence of the loans by recording false payments or making the payments herself, the complaint said.

Police said the loans were taken out using the names of “family members, friends and close acquaintances.”

Investigators also accused Cruz of getting more than $22,000 in reimbursements for unauthorized expenses and purchases. Some of the money was used to pay for health insurance premiums and cellphone bills for herself and “numerous other individuals,” the complaint said.

Police said after the forensic audit was completed, a lawyer representing Cruz gave the credit union a check for $40,000 to cover the payments for loans taken out using the names of other credit union members as well as the loans issued to her and her husband, the complaint said.

Cruz did not have an attorney listed in court documents.

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