Linda Lee Clark, 68, of Corydon, Iowa, has been sentenced to 78 months in federal prison for one of the most brazen embezzlement schemes in recent Iowa history. On November 15, 2016, Clark was handed her sentence by United States District Court Judge Rebecca Goodgame Ebinger after pleading guilty to embezzlement by a credit union employee. The case, prosecuted by United States Attorney Kevin E. VanderSchel, marks the collapse of trust and integrity at the heart of a once-stable financial institution.
Clark admitted to stealing $2,494,809.33 from SCICAP Credit Union in Chariton, Iowa—a theft that unfolded over nearly four decades. From her start as a bookkeeper in 1978 until her resignation in August 2015, Clark systematically looted member accounts, funneling deposits into her own pockets and those of her children. She didn’t just dip a hand in the till—she rewired the entire system, redirecting funds with cold precision while shielding her crimes with a shadow accounting system.
The fraud wasn’t a series of impulsive grabs. It was a calculated, long-term operation. Clark maintained two sets of books within the credit union’s data processing system, erasing her tracks while members remained oblivious. Unauthorized withdrawals, falsified deposits, and concealed transfers became routine. For years, she played both banker and thief, serving customers by day and stripping their savings by digital night.
Her betrayal didn’t just line personal accounts—it destroyed an institution. The SCICAP Credit Union, gutted by Clark’s actions, became insolvent and was forced into liquidation. Members who trusted their money to a local, community-based financial cooperative were left holding nothing. The ripple effect of Clark’s greed left a small-town institution in ruins and shattered public confidence.
The investigation was led by the National Credit Union Administration and the Federal Bureau of Investigation, agencies that untangled Clark’s dual ledgers and traced the flow of stolen funds. Her July 15, 2016 guilty plea to a federal information charge sealed her fate. No trial. No excuses. Just a confession to stealing over $2.4 million from the very people she was sworn to serve.
In addition to 78 months behind bars, Clark will serve five years of supervised release and must pay full restitution: $2,494,809.33. The sentence, delivered in Des Moines, sends a hard message: even white-collar crimes committed with quiet consistency will be met with federal steel. For the people of Chariton and Corydon, it’s closure—one built on accountability, not forgiveness.
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Key Facts
- State: Iowa
- Agency: DOJ USAO
- Category: Fraud & Financial Crimes
- Source: Official Source ↗
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