IRS union recovers some of the funds embezzled by treasurer

OGDEN — Officials with the local chapter of an Internal Revenue Service union say they have recovered funds allegedly stolen by the organization’s former treasurer.

National Treasury Employees Union Chapter 67 officers issued a statement to its members in response to a federal indictment in January of Shelia S. Brown on two counts of theft from a program receiving federal funds. She is free from custody, according to court records.

“NTEU, at every level, takes its fiduciary duties very seriously,” the statement says. “These are duties, after all, that impact the money you pay in dues. As part of these duties, NTEU maintains a fidelity bond under which we have recovered on behalf of the chapter and its members a substantial amount of the monies alleged to have been taken in this instance. It is possible, but far from certain, that Chapter 67 could recover additional amounts through restitution.”

Brown was an IRS employee and treasurer for Chapter 67 when more than $20,000 was taken from the chapter’s coffers in 2009 and 2010, according to the indictment.

Her duties with Chapter 67 included overseeing union dues and funds, balancing accounts, submitting and writing checks and paying for authorized travel. The IRS provides Chapter 67 with federal funding and subsidies, including $18,849 in free office space in 2009 and 2010, the indictment states.

From January 2009 to April 2010, Brown used Chapter 67’s bank accounts for her own use and personal benefit by making unauthorized cash withdrawals, issuing unauthorized checks and making personal purchases with debit cards, according to the indictment. She is accused of embezzling $14,155 in 2009 and $6,549 in 2010, the indictment alleges.

Chapter 67 officials said in the statement to members they have cooperated fully with the Department of Labor and the Internal Revenue Service in it’s investigation.

“Clearly, this is a disheartening episode for all involved. It is, however, coming to a close, and it is important that we focus on working together so that we may move forward not only for the future of Chapter 67 and all whom we represent, but for our agency and America’s taxpayers, as well,” the statement says.

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