A former employee of Altana Federal Credit Union in Billings, Montana, has been sentenced to over a year in prison for embezzlement. Kelly Jo Muzzana, 40, who served as the Operations Manager at the credit union in 2023, received a sentence of 12 months and one day in prison followed by three years of supervised release. She was also ordered to pay restitution amounting to $65,046.37 immediately, according to U.S. Attorney Kurt Alme.
Muzzana pleaded guilty to embezzlement by a credit union employee in July 2024. The sentencing was overseen by U.S. District Judge Susan P. Watters.
Court documents revealed that Muzzana had access to customer data and managed Altana's fraud-alert process during her tenure as Operations Manager. Her responsibilities included supervising employees handling fraud claims and authorizing bank cards re-issued or returned through the mail.
Muzzana exploited her position by creating duplicate bank cards from customers' accounts and using them for personal purchases at various retail stores such as Target and Walmart around Billings. She managed many fraud claims herself to avoid detection until an Altana customer reported a fraudulent purchase leading to an investigation.
Upon learning about the investigation from a detective's call, Muzzana fled the building and did not return. Altana reimbursed all affected customers for their losses.
In a victim impact statement, Jason Hagadone, CEO of Altana Federal Credit Union, expressed concerns over the incident stating that it posed "significant reputation risk" to the institution as members entrust their finances with them.
The case was prosecuted by Assistant U.S. Attorney Benjamin Hargrove following an investigation conducted by the Billings Police Department and FBI.