Kevin Spratt, a former senior branch sales representative at a federally insured credit union in South Philadelphia, has been sentenced to 27 months in prison for defrauding his employer and clients. Spratt was convicted of stealing approximately $772,155.84 through fraudulent loans and unauthorized withdrawals. In addition to the prison sentence handed down by United States District Court Judge Anita B. Brody, he will also serve five years of supervised release and pay $822,155.84 in restitution.
Spratt faced charges of bank fraud and aggravated identity theft, to which he pleaded guilty last October after being charged in September of the previous year. The fraudulent activities occurred between October 1, 2018, and September 15, 2022. During this time, Spratt took out about 32 loans using the names of ten credit union members without their knowledge and converted the funds for personal use.
Additionally, from February 14, 2020, through September 28, 2022, Spratt withdrew funds from the accounts of twelve credit union members without authorization. Six of these members were also victims of the fraudulent loan scheme.
Court filings revealed that Spratt manipulated credit union tellers by presenting photocopies of members’ driver’s licenses as proof that they were present during withdrawals. This allowed him to access member funds and convert them for his own benefit.
Spratt had direct interactions with most victims and limited their access to banking services by stopping their paper bank statements. This enabled him to control financial information flow and manage inquiries related to FCU accounts personally.
Acting U.S. Attorney Nelson S.T. Thayer Jr., emphasized that “While Spratt’s theft from his employer was inexcusable, his theft from clients who knew and trusted him was especially odious.” He added that law enforcement partners are prepared to investigate and prosecute individuals like Spratt who defraud businesses.
Edward V. Owens, Special Agent in Charge of HSI Philadelphia noted the importance of protecting financial institutions against exploitation by those entrusted with responsibility. “Kevin Spratt's actions not only defrauded the credit union and its members but also betrayed the very principles of integrity and honesty that are essential in the financial sector,” Owens stated.
The investigation was conducted by Homeland Security Investigations with Assistant United States Attorney Linwood C. Wright Jr., prosecuting the case.