The former American Savings Bank employee at the center of accusations that the bank tried to cover up her theft from a customer's account pleaded guilty in federal court yesterday to embezzlement and theft of public money.

The government says the stolen money was supposed to be used to pay the customer's state and federal taxes.

Marylin P. DeMotta, 43, faces up to 10 years in prison for each of two charges when a federal judge sentences her in August.

In return for the guilty pleas, the government promises to drop eight other charges against her.

DeMotta took $213,500 from the customer's account in 2004 and deposited all but $1,000 of it into a new ASB “;I-Plan”; account of another person, said William Shipley, assistant U.S. attorney. The rest went into the other person's checking account.

According to the indictment against her, DeMotta deposited a cashier's check in the other person's account by forging the other person's signature.

DeMotta was assistant manager of ASB's Hawaii Kai branch, which was competing at the time against all of the other ASB branches to get the most I-Plan deposits.

The $212,500 put the Hawaii Kai branch “;over the top,”; earning each of the branch employees bonuses of between $1,000 and $5,000, Shipley said.

In August 2006 the account holder, Ada Lim, who was 91 years old at the time, and her son William sued ASB in state court over the theft and alleged attempt to cover it up.

On the same day ASB's former security director, Cuthbert Corniel, filed a whistle-blower lawsuit in state court against the bank alleging ASB tried to discourage him from reporting the theft to state and federal authorities. And when he did report it, Corniel claims the bank stripped him of his authority.

ASB settled out of court with the Lims in September 2006 and with Corniel eight months later. None of the parties have released details of the settlements.