Former Fairview Township tax collector sentenced to 20 months’ imprisonment for embezzling $400,000 in property taxes

Date: March 19, 2026

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Scranton - The United States Attorney's Office for the Middle District of Pennsylvania announced that Karen McGinnis of Mountain Top, Pennsylvania, was sentenced on March 17, 2026, by United States District Judge Karoline Mehalchick to 20 months of imprisonment following her conviction for embezzling public funds.

According to United States Attorney Brian D. Miller, from March 2023 to January 2025, McGinnis was the tax collector for Fairview Township responsible for collecting property taxes from the residents of Fairview Township, including taxes payable to the Township, Luzerne County, and the Crestwood School District. During that timeframe, McGinnis embezzled more than $400,000 in property taxes and converted them to her own personal use by writing checks to herself from the tax collector bank accounts she maintained and controlled. Both Luzerne County and the Crestwood School District received more than $10,000 from the federal government via grants and other programs during this timeframe.

In addition to the sentence of imprisonment, Judge Mehalchick sentenced McGinnis to three years of supervised release following her term of imprisonment and ordered McGinnis to pay restitution in the amount of $367,088.35 to the victims of her crime. McGinnis previously paid approximately $40,000 back into the tax collector bank accounts prior to her crime being discovered.

Following McGinnis's sentence, Yury Kruty, Special Agent in Charge, IRS-Criminal Investigation, Philadelphia Field Office, noted, "IRS-Criminal Investigation is essential in embezzlement cases, where complex financial trails require expert investigation."

The Internal Revenue Service, Criminal Investigation Division investigated the case. Assistant United States Attorney Kyle A. Moreno prosecuted the case.

IRS-CI is the law enforcement arm of the IRS, responsible for conducting financial crime investigations, including tax fraud, narcotics trafficking, money laundering, public corruption, healthcare fraud, identity theft and more. It is the only federal law enforcement agency with investigative jurisdiction over violations of the Internal Revenue Code. IRS-CI has 18 field offices located across the U.S. and maintains an international presence through attaché posts abroad.