Former Sorority Executive Director Pleads Guilty To Bank Fraud

LOUDOUN COUNTY, VA — The former executive director of the Delta Sigma Theta Sorority pleaded guilty to embezzling more than $150,000. Jeanine Arnett, who was previously the chief of staff for Loudoun County's Chair-At-Large Phyllis Randall, were charged with bank fraud in the U.S. District Court of D.C.

Delta Sigma Theta noticed discrepancies in their finances shortly after Arnett left the organization for unrelated reasons, the sorority said. The sorority instituted an internal investigation before turning the matter over to the FBI.

In court, Arnett and her husband, Diallo Arnett, admitted to using the sorority's funds for personal expenses, according to the U.S. Attorney's Office. The Arnetts said they transferred more than $150,000 to their personal accounts through money transfers and credit card transactions between October 2017 and September 2019.

"We have a zero-tolerance policy for these practices and remain committed to safeguarding the finances of our organization," Delta Sigma Theta said on Thursday. "As always, we will continue to remain focused on our mission to support our members and provide life-changing services to our global communities."

The misappropriated funds were used for expenses at Amazon, Avis Rent a Car, GEICO, and T-Mobile, the U.S. Attorney's Office said. The Arnetts are also accused of using the Square Cash app to transfer more than $14,000 directly to their bank accounts.

"While Delta Sigma Theta and its members were committed to a mission of public service, the defendants were committed to a mission of personal benefit, stealing hundreds of thousands of dollars to use for their own pleasure," said Acting U.S. Attorney Channing Phillips. "The defendants – and others who steal from non-profit organizations to enrich themselves – will be caught, prosecuted, and punished for the damage they cause."

The Arnetts are scheduled for sentencing on July 29, 2021. They may be sentenced to up to 30 years in prison.