GARDEN CITY, Kan. — A former Kansas credit union loan officer has been sentenced to 19 months in federal prison after admitting he created fictitious loans in members’ names and used the proceeds to embezzle more than $171,000 over nearly four years, according to the U.S. Attorney’s Office.
Ricky Naovoravong, 39, of Garden City also was ordered to pay $207,920 in restitution after pleading guilty to one count of embezzlement by a credit union employee.
Federal prosecutors did not identify the Garden City credit union where Naovoravong worked, saying the institution’s name was being withheld to protect privacy and operational procedures.
Suspicious Transfer Led to Investigation
According to court documents cited by the U.S. Attorney’s Office, Naovoravong worked as a loan officer at the credit union when a manager discovered a suspicious transaction in August 2024 involving money transferred from a member’s savings account into Naovoravong’s checking account.
The manager determined Naovoravong had created documents for a $5,000 loan in the member’s name and then used money from the member’s account to make payments on the fraudulent loan that ultimately benefited Naovoravong, prosecutors said.
The discovery prompted a broader investigation that found Naovoravong had created additional fictitious loans and transferred proceeds into his personal account, according to the U.S. Attorney’s Office.
When confronted, Naovoravong admitted the loans were fraudulent and that the credit union members whose names were used did not know about them, prosecutors said.
Admits to Falsified Loans
Naovoravong also admitted creating new fraudulent loans to make payments on earlier fictitious loans, allowing him to conceal the scheme and prevent members from receiving notices about the loans, according to prosecutors.
Investigators determined Naovoravong embezzled $171,164 between November 2020 and August 2024.
“Banks and credit unions collect people’s personal information because it’s a requirement of doing business,” U.S. Attorney Ryan Kriegshauser said in a statement. “When employees with access to sensitive information use it to commit fraud, embezzlement, or other types of financial crimes, they will eventually get caught. When they are exposed, they’ll have to face the justice system.”
The FBI investigated the case.
