DOJ: Sewickley Woman Sentenced for Bank Fraud Involving Guardianship Agency Funds

• Hetzell fraudulently drafted checks from vulnerable individuals' accounts between November 2023 and February 2025, depositing funds into her own accounts.
• Her actions risked the viability of the non-profit guardianship agency where she was employed.

Judith A. Hetzell, a former business manager for a non-profit guardianship agency in Pennsylvania, was sentenced to two months of imprisonment and two years of supervised release for bank fraud. She was also ordered to pay $80,966 in restitution to her former employer after being convicted of drafting fraudulent checks from clients' accounts.

Between November 2023 and February 2025, Hetzell used her position to access and draft checks against the accounts of vulnerable individuals under the agency's care, depositing the funds into two personal bank accounts she controlled. The court noted the seriousness of her actions, which jeopardized the agency's operations.

• $80,966 restitution ordered

• Review internal controls for non-profit guardianship agencies handling fiduciary services to prevent unauthorized check drafting.
• Monitor for unusual check activity involving deposits to personal accounts of agency staff, especially between November 2023 and February 2025.
• Assess risk exposure for accounts managed by business managers with access to vulnerable individuals’ funds.

This case highlights the risks posed by insider threats within organizations that manage funds for vulnerable individuals, such as non-profit guardianship agencies. Compliance officers must ensure robust internal controls and monitoring systems are in place to detect and prevent unauthorized transactions by staff with fiduciary access. The significant restitution and criminal penalties imposed underscore the importance of safeguarding client assets and maintaining the integrity of financial operations in organizations serving at-risk populations.