PHILADEPHIA–A former credit union employee who defrauded a credit union and numerous members of more than $700,000 has been sentenced to prison.

Kevin Spratt, 36, of Philadelphia, was sentenced by United States District Court Judge Anita B. Brody to 27 months in prison and five years of supervised release for defrauding a credit union and multiple credit union members of approximately $772,155.84 through a combination of fraudulent loans and unauthorized withdrawals, according to Acting United States Attorney Nelson S.T. Thayer, Jr.

Spratt was also ordered to pay $822,155.84 in restitution.

Spratt was charged by information in September 2024 with one count of bank fraud and one count of aggravated identity theft. He pleaded guilty to the information in October, the U.S. Attorney said.

Worked at Branch

“The defendant had worked as a senior branch sales representative at a federally insured credit union (FCU) located in South Philadelphia. ,His duties included opening accounts, processing loan applications, and any branch duty other than depositing and withdrawing customer monies,” the U.S. attorney said. “As detailed in court filings, beginning on or about October 1, 2018, and continuing through on or about September 15, 2022, he stole money from the FCU by, unbeknownst to 10 credit union members, taking out a total of approximately 32 loans in their names and converting the loan proceeds to his own use.

“Further, beginning on or about February 14, 2020, through on or about September 28, 2022, he stole money from 12 FCU members by routinely withdrawing funds from their accounts without the members’ authorization,” the U.S. attorney continued. “Six of these FCU members’ names had been used in the aforementioned fraudulent loan scheme.”

Tellers Deceived

According to the filings, Spratt deceived credit union tellers into facilitating the withdrawal of money from member accounts by, among other things, providing photocopies of the members’ driver’s licenses to the tellers as evidence that the absent members were in the credit union at the time of each withdrawal.

“The teller would enter the information provided by Spratt into a computer, which would allow Spratt to retrieve the member funds he sought from a cash machine,” the U.S. attorney said. “After receiving that money, he converted the funds to his own use.

“Spratt was both familiar with, and personally interacted with, the large majority of the FCU members that he victimized,” the statement continued. “To hide his fraud from his victims, court documents state, Spratt routinely limited the victims’ access to banking services by cutting off their receipt of paper bank statements. By doing so, Spratt controlled the flow of financial information to his victims and forced many of them to personally interact with him to address any issues related to their FCU accounts. This allowed Spratt to manipulate the outcome of any member inquiry.”