Kathleen Gramlich Charged with Stealing $156K from School Employees’ Credit Union

Kathleen Gramlich, 65, of Valley Grove, West Virginia, is facing federal charges for allegedly stealing more than $156,000 from the Ohio County Schools Public Credit Union she once ran. The former executive director is accused of siphoning funds over a three-year stretch — from June 2013 to March 2016 — to cover her personal debts, according to a federal Information filed today in Wheeling.

The theft came to light in March when a routine account reconciliation by a credit union employee flagged suspicious activity. Investigators say Gramlich exploited her position of trust, funneling money meant for school employees and retirees into her own pockets. The scheme remained undetected for years, despite internal checks, raising questions about oversight at the tight-knit financial institution.

Gramlich has been charged with one count of “Theft from a Credit Union,” a felony that carries a maximum penalty of 30 years in prison. If convicted, she will also be ordered to pay full restitution. Federal prosecutors, led by Assistant U.S. Attorney Jarod J. Douglas, are pushing for accountability, emphasizing that while the crime was internal, the fallout could’ve been far worse.

“The member accounts at the Ohio County Public Schools Federal Credit Union are insured by the National Credit Union Administration Board,” said U.S. Attorney William J. Ihlenfeld, II. “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.”

The credit union serves about 1,000 members, including active, former, and retired staff of Ohio County Public Schools and their families. Many are low-to-moderate income workers who relied on the institution for safe, accessible banking. The breach of trust cuts deep in a community where institutions like these are lifelines.

The case was investigated jointly by the Federal Bureau of Investigation and the West Virginia State Police. An information is merely an accusation. Kathleen Gramlich is presumed innocent until proven guilty in a court of law.