A Naknek woman found guilty of embezzling over half a million dollars from the Naknek Electric Association has been sentenced to serve 34 months in federal prison, followed by three years of probation.
The U.S. Attorney’s Office for the District of Alaska said that this was the largest embezzlement from an organization receiving federal funds ever prosecuted in Alaska.
Donna Vukich, 60, was the general manager at NEA for almost two decades, according to NEA. In that role, she oversaw NEA’s spending and financial reporting. Her May 16 sentencing concerns her last four years as manager.
Vukich assigned her personal expenses to general accounts. She used a company credit card to make $510,181 in unauthorized personal purchases — including approximately $113,000 for cruise and air travel, $16,000 for visits to a casino in Washington state and $7,000 on purchases from dōTERRA, a company that sells essential oils. She also used the NEA’s money to pay her daughter’s college tuition.
At the same time, the Internal Revenue Service found Vukich also filed false income tax returns. The IRS investigation found that because Vukich did not report the embezzled NEA money, the federal government lost $138,689 in taxes.
Vukich pleaded guilty in January to federal theft and filing a false tax return. She has repaid NEA the money she was found guilty of embezzling.