PHILADELPHIA, PA — Kevin Spratt, 36, of Philadelphia, was sentenced on Tuesday, March 4, to 27 months in federal prison for orchestrating a fraud scheme that defrauded a South Philadelphia-based credit union and its members of approximately $772,155.84. U.S. District Court Judge Anita B. Brody also sentenced Spratt to five years of supervised release and ordered him to pay $822,155.84 in restitution.
Spratt, who previously worked as a senior branch sales representative at the federally insured credit union, pleaded guilty in October 2024 to charges of bank fraud and aggravated identity theft. His role included processing loan applications and account management, a position he leveraged to carry out the scheme over nearly four years.
According to court documents, from October 2018 to September 2022, Spratt fraudulently created 32 loans using the identities of 10 credit union members, funneling the proceeds for his personal use. Additionally, between February 2020 and September 2022, he withdrew funds without authorization from 12 members’ accounts, six of whom were already victims of the fraudulent loans. To deceive credit union tellers, Spratt presented copies of the victims’ driver’s licenses, falsely claiming they authorized the transactions.
Spratt further concealed his crimes by cutting off members’ access to paper account statements and redirecting complaints to himself. This allowed him to manipulate victims’ inquiries and maintain control over their accounts.
“While Spratt’s theft from his employer was inexcusable, his theft from clients who knew and trusted him was especially odious,” said Acting U.S. Attorney Nelson S.T. Thayer, Jr. “When crooks like this defraud businesses and steal other people’s hard-earned money, we and our law enforcement partners stand ready to investigate, prosecute, and hold them responsible for their crimes.”
The scheme was investigated by Homeland Security Investigations and prosecuted by Assistant U.S. Attorney Linwood C. Wright, Jr. Special Agent in Charge Edward V. Owens emphasized the commitment to protecting financial institutions from insider crimes, stating, “We will work tirelessly to ensure those engaging in financial fraud are brought to justice.”
Spratt’s sentencing marks the conclusion of a detailed investigation into his exploitation of his trusted position at the credit union.
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