The Virginian-Pilot 
                             THE VIRGINIAN-PILOT 
              Copyright (c) 1996, Landmark Communications, Inc.

DATE: Saturday, January 27, 1996             TAG: 9601270227
SECTION: LOCAL                    PAGE: B3   EDITION: FINAL 
SOURCE: BY TOM SHEAN, STAFF WRITER 
DATELINE: NORFOLK                            LENGTH: Short :   45 lines

EX-CREDIT UNION MANAGER GETS 4 MONTHS' JAIL TERM HE PLEADED GUILTY TO MISAPPLYING MORE THAN $60,000.

A former manager of the Portsmouth Teachers Federal Credit Union was sentenced in U.S. District Court on Friday to four months in prison after pleading guilty to wilfully misapplying more than $60,000 of the credit union's funds.

Reginald L. Seaton, who worked at the credit union from 1985 until April 1993, also was sentenced to three years of supervised release, including four months of home confinement.

In addition, Seaton was ordered to repay $14,976 to the credit union.

The violation of wilfully misapplying funds carried a maximum term of 30 years in prison and a maximum fine of $1 million.

In his guilty plea entered last August, Seaton admitted taking $62,576 by cashing checks drawn on the credit union's account for supplies. As its manager, Seaton had been authorized to have credit union checks written to him to pay suppliers, the U.S. attorney's office said.

However, Seaton was required to obtain proof of any purchases and to turn over the documents to the credit union's clerk. He failed to provide records to substantiate his cash withdrawals, prosecutors said.

The government was not aware of any evidence that Seaton made false entries in the credit union's records or took any steps to conceal his offense, the U.S. attorney's office said.

Seaton's criminal acts occurred between May 1992 and January 1993 and came to light during an audit by the credit union's bonding company. Seaton left the credit union three months later.

The credit union, which serves employees of the Portsmouth public school system and their relatives, has 1,500 members and assets of $1.7 million.

The U.S. attorney's office said the credit union's losses were reduced by the recovery of $24,600 from a safe that had been in Seaton's control.

In addition, Seaton's parents paid $24,000 of partial restitution on his behalf. His parents had been officers and directors of the credit union.

KEYWORDS: EMBEZZLEMENT CREDIT UNION by CNB