Former operations manager admits embezzling from Billings federal credit union

BILLINGS — The former operations manager of a Billings federal credit union admitted today to embezzling more than $60,000 while employed there, U.S. Attorney Jesse Laslovich said.

The defendant, Kelly Jo Muzzana, 40, pleaded guilty to an information charging her with embezzlement by credit union employee. Muzzana faces a maximum of 30 years in prison, a $1 million fine and five years of supervised release.

U.S. Magistrate Judge Timothy J. Cavan presided. A sentencing date will be set before U.S. District Judge Susan P. Watters. The court will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. Muzzana’s release was continued pending further proceedings.

The government alleged in court records that from January 2023 through Dec. 12, 2023, Muzzana, who was the operations manager at Altana Federal Credit Union, embezzled more than $60,000 of credit union funds by using debit cards, credit cards and account information of customers to make unauthorized purchases. In addition, Muzzana processed customers’ fraudulent spending claims personally to avoid detection and prevented many of the customers from filing police reports, Some, however, did file police reports. Muzzana had access to customer data and was responsible for processing Altana’s entire fraud-alert process. Muzzana created duplicate bank cards for customers’ accounts and took them home with her in addition to taking cards Altana received in the mail that were undelivered to customers. Muzzana used the bank cards to make purchases online and in retail stores around Billings. 

The U.S. Attorney’s Office is prosecuting the case. The Billings Police Department and FBI conducted the investigation.

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