Former Pa. tax collector sentenced for stealing more than $400,000

A former Luzerne County tax collector was sentenced to 20 months in federal prison on Tuesday after embezzling more than $400,000 in public funds.

Karen McGinnis, 46, of Luzerne County, served as Fairview Township’s tax collector from March 2023 to January 2025, according to a press release from the United States District Court.

McGinnis was responsible for collecting property taxes and taxes owed to the township, Luzerne County, and the Crestwood School District, according to prosecutors.

Prosecutors claim McGinnis stole over $400,000 in property taxes by making checks to herself from bank accounts she controlled.

When McGinnis was the tax collector, the federal government provided more than $10,000 to Luzerne County and the Crestwood School District through grants and other programs, granting them criminal authority.

McGinnis was also sentenced to three years of supervised release after her incarceration and forced to pay $367,088.35 in reparations to the victims.

According to The Citizens’ Voice, McGinnis blamed embezzling on an internet gambling addiction, as well as “mental health and personal life struggles.”

The offense had a maximum possible term of ten years in prison, but McGinnis faced a guideline range of only 18-24 months under federal sentencing guidelines due to her lack of a prior record, The Citizens’ Voice said.

Prosecutors said McGinnis had returned $40,000 to tax collection bank accounts before the wrongdoing was detected.