A former Kansas credit union employee was sentenced to a year and seven months in prison and ordered to pay $207,920 in restitution after embezzling approximately $171,000 by creating fake loans to members.

According to the US Department of Justice, court documents indicate Ricky Naovoravong, 39, of Garden City pleaded guilty to one count of embezzlement by a credit union employee.

Naovoravong was a loan officer at a credit union in Garden City. In August 2024, a manager noticed a suspicious transfer from a member’s savings account into Naovoravong’s checking account. The manager noted that Naovoravong created documents for a $5,000 loan in the victim’s name then used the victim’s account to make loan payments that would be deposited into his account.

A broader investigation ensued and determined Naovoravong had created other loans and transferred funds into his personal account. When confronted, Naovoravong admitted the loans were fictitious, and the victims knew nothing of them. He said would continue to create new fictitious loans to make payments on previous fictitious loans so that members wouldn’t be notified of the loans.

The investigation showed the defendant 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,” said U.S. Attorney Ryan A. Kriegshauser. “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.”