A Muscatine woman has been accused of theft at an Iowa City credit union.

According to an Iowa City police complaint, Morgan Machholz, 20, 3617 Highway 22, was charged Aug. 23 with second-degree theft that resulted from fraudulent bank deposits at the University of Iowa Community Credit Union Iowa Ave. branch.

Machholz allegedly visited the credit union on Aug. 6 where she opened a new checking account. On Aug. 23, she made three empty envelope deposits totaling $6,500 and subsequent withdrawals through the account.

After the fraudulent deposits, Machholz withdrew $3,900 in cash, the complaint said. She is on video surveillance and has been identified as the account holder and the person completing the deposits.

Second-degree theft is a class-D felony punishable up to five years in prison and a fine of $7,500.

—By Quentin Misiag