Karen McGinnis, the former tax collector for Fairview Township in Pennsylvania, has pleaded guilty to embezzling more than $400,000 in property taxes. The plea was entered before United States District Judge Karoline Mehalchick, according to an announcement from the U.S. Attorney’s Office for the Middle District of Pennsylvania.
McGinnis, 46, served as tax collector from March 2023 until January 2025. During her tenure, she was responsible for collecting property taxes on behalf of Fairview Township, Luzerne County, and the Crestwood School District. Authorities allege that she converted over $400,000 in collected funds for her personal use during this period.
Both Luzerne County and the Crestwood School District received federal funding exceeding $10,000 through grants and other programs while McGinnis was serving as tax collector.
McGinnis resigned from her position in March 2025. As part of her plea agreement, she has agreed not to seek public office for either three years or any probation term imposed—whichever is longer—and to pay full restitution of the embezzled funds.
Yury Kruty, Special Agent in Charge at IRS-Criminal Investigation Philadelphia Field Office stated: “The role of IRS-Criminal Investigation becomes even more important in embezzlement and fraud cases due to the complex financial transactions that can take time to unravel.”
The investigation was led by the Internal Revenue Service’s Criminal Investigation Division. Assistant U.S. Attorney Kyle A. Moreno is prosecuting the case.
If convicted under federal law for this offense, McGinnis faces a maximum penalty of ten years imprisonment, supervised release following incarceration, and a fine. Sentencing will be determined by the judge after considering relevant statutes and guidelines.
