Koss, of Ludlow, must write a letter to the credit union, expressing his apologies.
SPRINGFIELD – Robert W. Koss, the former director of the Western Mass. Electric Co. Credit Union, must serve four years of supervised release, including one in home confinement, for embezzling more than $225,000 from his employer before retiring in 2006.
At the suggestion of a prosecutor, Judge Michael A. Ponsor took the unusual step of ordering Koss, 68, of Ludlow, to write a letter of apology to the Springfield-based credit union he ran for three decades.
In the majority of white collar crime cases, Ponsor said defendants tend to apologize for “what happened,” instead of taking direct responsibility.
“I’m waiting to hear I’m very sorry for what I did,” Ponsor said, in U.S. District Court.
A younger defendant would likely have received a two-year prison sentence, according to the judge, who said going to prison “would be extremely dangerous” to Koss, who appeared in a wheelchair.
In September, Koss pleaded guilty to embezzlement and filing a false tax return while running the federally guaranteed credit union for the utility’s employees, family members and retirees. Under federal guidelines, Koss could receive up to 33 months in prison.
From the late 1990s and through 2006, Koss collected about $225,000 from invented or inflated expense reimbursements, according to Assistant U.S. Attorney William M. Welch II. He also falsified his income on a 2005 tax return, reporting between $20,000 and $30,000 less than he earned, Welch said.
Koss must repay the full $225,000 within 30 days, under Ponsor’s order; most of the funds have already been repaid, explained Springfield defense lawyer Jack F. St. Clair.
Wendy J. Tariff, the credit union’s CEO, said her predecessor not only damaged the institution’s reputation, but also hobbled its daily operations by refusing to install up-to-date technology. In a letter to Ponsor, Tariff said the lack of technology – including telephones with message systems - help to conceal the fraud.
St. Clair said his client's reluctance to embrace new technology was a generation trait, and not intended to cover up his crimes.