Former Pennsylvania Tax Collector Sentenced for Embezzling Over $400,000 in Property Taxes

Karen McGinnis, a former tax collector for Fairview Township, Pennsylvania, has been sentenced to 20 months in federal prison and ordered to pay significant restitution for embezzling more than $400,000 in property taxes. According to the U.S. Attorney’s Office for the Middle District of Pennsylvania, McGinnis was responsible for collecting property taxes from residents, which were designated for the Township, Luzerne County, and the Crestwood School District. The funds were allegedly diverted for her personal use between March 2023 and January 2025 through checks written from the tax collector bank accounts she managed.

The scheme involved McGinnis writing checks to herself from the tax collector bank accounts she controlled, thereby converting the collected property taxes to her own financial benefit. This period of embezzlement occurred while both Luzerne County and the Crestwood School District received substantial federal funding through grants and other programs exceeding $10,000. Following her prison sentence, McGinnis will be subject to three years of supervised release. In addition to the imprisonment, she has been ordered to pay $367,088.35 in restitution to the victims of her crime. Prior to the discovery of her actions, McGinnis had already returned approximately $40,000 to the tax collector bank accounts. The investigation into McGinnis’s actions was conducted by the Internal Revenue Service, Criminal Investigation Division, with the case being prosecuted by Assistant United States Attorney Kyle A. Moreno.

Article by Mel Anara, based upon information from the U.S. Attorney’s Office for the Middle District of Pennsylvania

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