Jan.04, 2010, 11:04 am EST

As part of a plea agreement, an Ohio County woman pleaded guilty in federal court Monday to embezzlement from a credit union and money laundering.

Bernie D. Metz, 57, of Valley Grove, was arrested last year on a federal warrant after millions of dollars were discovered missing from the Center Valley Credit Union in Wheeling, where she previously served as chief executive officer.

The charges were filed when a routine audit at the credit union showed there was nearly $9 million missing from $17 million that should have been available.

If U.S. District Court Judge Frederick P. Stamp Jr. approves the request,, Metz could serve 7 years and 3 months in prison and agree to forfeit property that she used embezzled money to obtain, like the Roadworthy Restaurant she owned in West Liberty and several family vehicles. She may also be required to pay a monetary judgment of about $8.9 million.

As part of the plea agreement, Metz pleaded guilty to two counts. The first count was a violation of a statute making it a crime for an employee of a federal credit union to embezzle and misapply money, funds, credits and other things of value in excess of $1,000, according to a news release from acting U.S. Attorney Betsy Jividen.

The second count was a money laundering violation, charging Metz with causing a forged check to be drawn on the operating account for the credit union in July 2007. The $200,000 check was made payable to a construction company that was building the Roadworthy Restaurant.

An Internal Revenue Service special agent testified in court Monday and described five ways he said Metz embezzled and misapplied credit union funds. The agent said Metz made unauthorized withdrawals from members' accounts, wrote checks on the credit union account for personal expenses and made false entries showing withdrawals by members from their accounts.

According to Jividen, Metz also made fictitious check deposits into her family members' accounts with no documentation showing the funds existed. She also wrote checks from the credit union's account to cover personal expenses, but did not record the withdrawals in the credit union records. Jividen also said Metz recorded fictitious deposits in the credit union's general ledger then made withdrawals with credit union checks written for her own benefit.

Also as part of the plea agreement, Metz's husband, Everett, and children will not be prosecuted. Prosecutors told NEWS9 Metz's husband would have likely been charged with conspiracy. They said there is no evidence her children committed any wrongdoing.

Metz remains free on bond while the judge considers the plea agreement. Stay with NEWS9 and WTOV9.com for continuing coverage as details become available.