Michael P. Kelly, 61, was sentenced Tuesday in U.S. District Court to do his time at Morgantown Federal Correction Institution in West Virginia. He could have received up to five years in prison.

In July, Kelly pleaded guilty to a felony charge of embezzling $97,970 from United Transportation Union Local 586, of Willard, while serving as its secretary and treasurer.

Kelly embezzled the union funds from January 2004 through November 2006 while working from his home in Crestline. He worked as a conductor for CSX and retired in 2008 after 42 years.

According to federal statute, Kelly is barred from maintaining a local union office for three years.

Judge Lesley Wells of the U.S. District Court for the Northern District gave Kelly a reduced sentence because he had no criminal history, alcohol or substance abuse, or mental illness.

"I don't think you'll do this again," Wells said. "I think you figured out you shouldn't have done this. You started paying it back, and that's a good thing. But you have a long way to go."

According to court documents, Kelly obtained the funds by issuing numerous checks payable to himself recorded as salary and expenses. In those cases, he made automated withdrawals from the union account that he was responsible for maintaining. There were a few instances where Kelly issued checks written by his wife and daughter, including a $1,500 check for his daughter's tuition.

To conceal the unauthorized transactions, Kelly forged the signature of the union president on most of the checks, issued and negotiated some checks containing only his signature and falsely recorded the payee's name on the union's disbursement control ledger for some checks.

Wells said Kelly would take money from next month's salary and use it for bills and paid the union back on payday. Over time, he would get in over his head and was unable to pay the money back.

Kelly was ordered to pay restitution of $75,000 to the Great American Insurance Company (of Local 586), $18,268 to his local union office and $100 for special assessment. To date, Kelly has paid the union $5,300, according to court documents.

While in prison, Kelly will pay 25 percent of his monthly income through the Federal Board of Prisons Inmate Financial Responsibility Program. If a restitution balance remains upon his release, Kelly will pay 10 percent of his monthly income during the term of supervised release.

Wells said Kelly's pension and retirement income will not be affected during his prison term.

Kelly sat next to defense attorney Carlos Warner, calm and collected. Kelly briefly addressed the court, accepting full responsibility.

"Whatever I need to do, I'll do. I want to put this in the past and move on," Kelly said.

Wells read a statement from Kelly before sentencing.

"Family means everything to me, and I'm sorry I put them in this position," Kelly wrote. "I accept full responsibility and ask for forgiveness."

(The preceding article by Terricha Bradley was published October 14, 2009, by the Mansfield News Journal.)